Symantec 2009 Annual Report Download - page 138

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The following table presents the purchase price allocation included on our Consolidated Balance Sheets (in
thousands):
Net tangible assets
(1)
................................................... $ 20,408
Other intangible assets
(2)
................................................ 169,813
Goodwill
(3)
.......................................................... 470,280
Deferred tax liability ................................................... (30,180)
Total purchase price .................................................... $630,321
(1)
Net tangible assets include deferred revenue which was adjusted down from $34 million to $10 million
representing our estimate of the fair value of the contractual obligation assumed for support services.
(2)
Other intangible assets include customer relationships of $127 million, developed technology of $39 million
and definite-lived tradenames of $4 million, which are amortized over their estimated useful lives of one to
eight years. The weighted-average estimated useful lives were 8.0 years, 4.0 years and 1.0 years, respectively.
(3)
Goodwill is not tax deductible and resulted primarily from our expectation of synergies from the integration of
MessageLabs product offerings with our product offerings.
Other fiscal 2009 acquisitions
During fiscal 2009, in addition to MessageLabs, we completed acquisitions of five nonpublic companies for an
aggregate of $478 million in cash, including $6 million in acquisition-related expenses resulting from financial
advisory, legal and accounting services, duplicate sites, and severance. No equity interests were issued. We recorded
goodwill in connection with each of these acquisitions, which 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. All of the goodwill from the nSuite Technologies, Inc. (“nSuite”) acquisition is tax deductible and most
of the goodwill from the PC Tools Pty Ltd. (“PC Tools”) acquisition is tax deductible, while goodwill for the other
acquisitions is not tax deductible. In addition, the purchase price for PC Tools is subject to a contingent
consideration adjustment of up to an additional $30 million in cash if PC Tools achieves certain billings and
expense targets. The results of operations for the acquired companies have been included in our results of operations
since their respective acquisition dates. AppStream, Inc. (“AppStream”), nSuite and Mi5 Inc. (“Mi5”) are included
in our Security and Compliance segment and SwapDrive, Inc. (“SwapDrive”) and PC Tools are included in our
Consumer segment. Supplemental proforma information for the acquisitions is not material to our financial results
and is therefore not included.
The purchase price allocations related to these other fiscal 2009 acquisitions are as follows:
AppStream SwapDrive nSuite PC Tools Mi5 Total
(In thousands)
Acquisition date . . . . . . . April 18, 2008 June 6, 2008 August 8, 2008 October 6, 2008 March 20, 2009
Net tangible assets
(liabilities) . . . . . . . . . $ 14,227 $ 1,505 $ (838) $ (10,719) $ 504 $ 4,679
Other intangible
assets
(1)
. . . . . . . . . . . 10,950 42,110 5,717 100,500 6,230 165,507
Goodwill . . . . . . . . . . . . 27,402 80,850 15,507 172,510 11,273 307,542
Total purchase price . . . . $ 52,579 $ 124,465 $ 20,386 $ 262,291 $ 18,007 $477,728
(1)
Other intangible assets include customer relationships of $43 million, developed technology of $90 million and
definite-lived tradenames of $1 million, which are amortized over their estimated useful lives of one to nine
78
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)