Symantec 2008 Annual Report Download - page 165

$1 billion senior unsecured revolving credit facility to partially finance our acquisition of Vontu. See further
discussion in Note 9.
Of the total purchase price, $259 million was allocated to goodwill, $36 million to acquired product rights,
$33 million to other intangible assets, $10 million to net tangible assets and $17 million to deferred tax liabilities.
Net tangible assets include deferred revenue which was adjusted down from $25 million to $2 million representing
our estimate of the fair value of the support contractual obligation assumed. Goodwill, none of which was
deductible for tax purposes, resulted primarily from our expectation of synergies from the integration of Vontu’s
software offerings with our software offerings. Acquired product rights are amortized to cost of revenues over four
years. Other intangible assets are amortized to operating expenses from three to eight years.
Financial results for Vontu are included in the Security and Compliance segment. Pro forma disclosures of the
financial results of Vontu were not included as they were not deemed material.
Transparent Logic Purchase
On January 11, 2008, we completed the acquisition of Transparent Logic Technologies, Inc. (“Transparent
Logic”), a provider of workflow optimization software. Transparent Logic’s products are expected to complement
our existing products. We purchased all of the voting equity interests of Transparent Logic for $12 million, which
included acquisition related costs. Of the aggregate purchase price, $9 million was allocated to goodwill and the
remainder to other intangible assets, developed technology and net tangible assets. Goodwill, none of which was
deductible for tax purposes, was established based on the expectation of synergies from the integration of
Transparent Logic’s product offerings with our product offerings. The results of operations of Transparent Logic
are included as part of the Security and Compliance segment. Proforma disclosures of the financial results of
Transparent Logic were not included as they were not deemed material.
Company-i Purchase
On December 1, 2006, we completed the acquisition of Company-i Limited (“Company-i”), a UK-based
professional services firm that specialized in addressing key challenges associated with operating and managing a
data center for customers in the financial services industry, in exchange for all of the voting equity interests of
Company-i. Of the aggregate $26 million purchase price, $22 million was allocated to goodwill, $6 million to other
intangible assets and the remainder to net deferred tax liabilities and net tangible assets. Goodwill, none of which
was deductible for tax purposes, was established based on the expectation of synergies from the integration of
Company-i’s service offerings with our service offerings. Other intangible assets are amortized to operating
expenses over eight years. Financial results for Company-i are included in the Services segment. Pro forma
disclosures of the financial results of Company-i were not included as they were not deemed material.
As a result of Company-i meeting target billings conditions in the first quarter of fiscal 2008, as was stipulated
in the merger agreement, we paid Company-i an additional $11 million in cash. This increase in purchase price
resulted in a respective increase in goodwill.
4FrontSecurity Purchase
On February 23, 2007, we completed the acquisition of 4FrontSecurity, Inc. (“4FrontSecurity”), a software
developer and provider of governance, risk management, and regulatory compliance products that enables
customers to measure and manage business and security assessments of organizational information. Of the
aggregate $7 million purchase price, $6 million was allocated to goodwill and the remainder to other intangible
assets and liabilities. Goodwill, none of which was deductible for tax purposes, was established based on the
expectation of synergies from the integration of 4FrontSecurity’s technology with our existing product offerings.
Other intangible assets are amortized to operating expenses over seven years. Financial results for 4FrontSecurity
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)