Symantec 2010 Annual Report Download - page 156

Fiscal 2008 acquisitions
Altiris Purchase
On April 6, 2007, we completed the acquisition of Altiris Inc. (“Altiris”), a leading provider of information
technology management software that enables businesses to easily manage and service network-based endpoints. In
exchange for all of the voting equity interests of Altiris, we paid the following (in millions):
Cash paid for acquisition of common stock outstanding, excluding cash acquired ......... $ 990
Fair value of stock options assumed . ......................................... 17
Fair value of restricted stock awards . ......................................... 5
Acquisition-related transaction costs . ......................................... 4
Restructuring costs....................................................... 22
Total purchase price ...................................................... $1,038
The results of operations of Altiris are included since the date of acquisition as part of the Security and
Compliance segment, with the exception of Altiris Services, which are included as part of our Services segment.
Supplemental proforma information for Altiris was not material to our financial results and was therefore not
included.
The following table presents the purchase price allocation included in our Consolidated Balance Sheets (in
millions):
Net tangible assets
(1)
..................................................... $ 231
Intangible assets
(2)
....................................................... 313
Goodwill
(3)
............................................................ 633
Deferred tax liability ..................................................... (139)
Total purchase price ...................................................... $1,038
(1)
Net tangible assets included deferred revenue which was adjusted down from $46 million to $12 million
representing our estimate of the fair value of the contractual obligation assumed for support services.
(2)
Intangible assets included customer relationships of $201 million, developed technology of $90 million and
definite-lived tradenames of $22 million, which are amortized over their estimated useful lives of one to eight
years. The weighted-average estimated useful lives were 8.0 years, 5.1 years and 7.6 years, respectively.
(3)
Goodwill was deductible in the State of California for tax purposes. The amount resulted primarily from our
expectation of synergies from the integration of Altiris product offerings with our product offerings.
Other fiscal 2008 acquisitions
During fiscal 2008, in addition to Altiris, we completed acquisitions of two nonpublic companies for an
aggregate of $334 million in cash, including $5 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, none of which was tax deductible, resulting 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 Vontu Inc. (“Vontu”) and the Other
acquisition have been included in our results of operations since their respective acquisition dates and are included
in our Security and Compliance segment.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)