Symantec 2007 Annual Report Download - page 94

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Fiscal 2005 acquisitions
During fiscal 2005, we acquired five privately-held companies for a total purchase price of $461 million,
including acquisition-related expenses resulting from financial advisory, legal and accounting services, duplicate
sites, and severance costs. The purchase price consisted of $439 million in cash and assumed stock options valued at
$22 million. 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 of the acquired
companies have been included in our operations from the dates of acquisition. Brightmail Incorporated, TurnTide,
Inc., and Platform Logic, Inc. are included in our Security and Data Management segment and @stake, Inc. and
LIRIC Associates are included in our Services segment. Details of the purchase price allocations related to our fiscal
2005 acquisitions are included in the table below. Our fiscal 2005 acquisitions were considered insignificant for pro
forma financial disclosure, both individually and in the aggregate.
Brightmail TurnTide @stake LIRIC
Platform
Logic Total
(In thousands)
Acquisition date ..... June 21, 2004 July 7, 2004 Oct 7, 2004 Oct 11, 2004 Dec 9, 2004
Net tangible assets
(liabilities) ....... $ 23,999 $ (305) $ 4,201 $ 617 $ (221) $ 28,291
Acquired product
rights ........... 40,020 4,200 9,200 540 3,900 57,860
Other intangible
assets ........... 8,439 60 11,100 6,475 50 26,124
IPR&D ........... 3,480 — — — — 3,480
Goodwill .......... 226,959 25,933 21,082 9,300 27,206 310,480
Deferred tax asset
(liability), net ..... 14,805 (1,704) 3,454 (2,105) (599) 13,851
Deferred stock-based
compensation ..... 21,339 — — — — 21,339
Total purchase price . . $ 339,041 $ 28,184 $ 49,037 $ 14,827 $ 30,336 $461,425
The amounts allocated to Acquired product rights are being amortized to Cost of revenues in the Consolidated
Statements of Income over their estimated lives of one to five years. The amounts allocated to Other intangible
assets are being amortized to Operating expenses in the Consolidated Statements of Income over their estimated
lives of one to eight years. The IPR&D was written off on the acquisition date.
88
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)