Symantec 2007 Annual Report Download - page 93

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potential changes in future target markets. Based on these factors, a discount rate of 13.5% was deemed appropriate
for valuing the IPR&D.
The estimates used in valuing IPR&D were based upon assumptions believed to be reasonable but which are
inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events
and circumstances may occur.
Other fiscal 2006 acquisitions
During fiscal 2006, in addition to Veritas, we completed acquisitions of five privately-held companies and one
public company for an aggregate of $627 million in cash, including acquisition-related expenses resulting from
financial advisory, legal and accounting services, duplicate sites, and severance costs of approximately $18 million,
of which an insignificant amount remains as an accrual as of March 31, 2007. We recorded goodwill in connection
with each of these acquisitions. In each acquisition, goodwill resulted primarily from our expectation of synergies
from the integration of the acquired company’s technology with our technology and the acquired company’s access
to our global distribution network. In addition, each acquired company provided a knowledgeable and experienced
workforce. The results of operations for the acquired companies have been included in our results of operations
since their respective acquisition dates. XtreamLok Pty. Ltd and substantially all of WholeSecurity, Inc. are
included in our Consumer Products segment, Sygate Technologies, Inc., the remainder of WholeSecurity, Bind-
View Development Corporation, and IMlogic, Inc. are included in our Security and Data Management segment, and
Relicore, Inc. is included in our Data Center Management segment. Details of the purchase price allocations related
to these other fiscal 2006 acquisitions are included in the table below.
XtreamLok WholeSecurity
Sygate
Technologies BindView IMlogic Relicore Total
(In thousands)
Acquisition date . . . May 16, 2005 Oct 4, 2005 Oct 7, 2005 Jan 6, 2006 Feb 13, 2006 Feb 17, 2006
Net tangible assets
(liabilities) . . . . . . $ (59) $ 632 $ 10,764 $ 37,691 $ 8,019 $ (987) $ 56,060
Acquired product
rights . . . . . . . . . 4,000 11,600 23,712 38,100 10,300 9,600 97,312
Other intangible
assets . . . . . . . . . — 200 2,496 27,200 10,100 2,800 42,796
IPR&D . . . . . . . . . . — — — 1,100 — — 1,100
Goodwill . . . . . . . . 15,132 50,111 130,184 93,078 61,512 31,748 381,765
Deferred tax asset
(liability), net . . . . (1,200) 5,727 9,815 23,547 769 8,910 47,568
Total purchase
price . . . . . . . . . . $ 17,873 $ 68,270 $ 176,971 $ 220,716 $ 90,700 $ 52,071 $626,601
The amounts allocated to Acquired product rights are being amortized to Cost of revenues in the Consolidated
Statements of Income over their useful lives of four to five years. The amounts allocated to Other intangible assets
are being amortized to Operating expenses in the Consolidated Statements of Income over their useful lives of one
to eight years. The IPR&D was written off on the acquisition date.
87
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)