Symantec 2012 Annual Report Download - page 159

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
(2) Intangible assets included customer relationships, developed technology, and tradenames of $82 million,
$60 million, and $12 million, respectively, which are amortized over their estimated useful lives of seven to
nine years.
(3) Goodwill is not tax deductible. The amount resulted primarily from our expectation of synergies from the
integration of Clearwell product offerings with our existing product offerings.
Other Fiscal 2012 acquisitions
During fiscal 2012, in addition to Clearwell, we completed the acquisitions of LiveOffice LLC
(“LiveOffice”) and another nonpublic company for an aggregate purchase price of $151 million, which consisted
of $144 million in cash, net of $7 million cash acquired. The results of operations for the acquired companies
have been included in the Storage and Server Management segment and the Security and Compliance segment
since their respective acquisition dates. Supplemental pro forma information for these acquisitions was not
material to our financial results and therefore not included. For fiscal 2012, we recorded acquisition-related
transaction costs of $2 million, which were included in general and administrative expense.
The following table presents the purchase price allocation included in our Consolidated Balance Sheets
(in millions):
LiveOffice Other Total
Acquisition date ............................. January 13, 2012 March 2, 2012
Net tangible (liabilities) assets(1) ................ $ (5) $ 2 $ (3)
Intangible assets(2) ........................... 51 8 59
Goodwill(3) ................................. 69 26 95
Total purchase price .......................... $ 115 $ 36 $151
(1) Net tangible (liabilities) assets included deferred revenue, which was adjusted down from $12 million to $6
million, representing our estimate of the fair value of the contractual obligation assumed for support
services.
(2) Intangible assets included primarily developed technology of $44 million and customer relationships of $15
million, which are amortized over their estimated useful lives of four to ten years. The weighted-average
estimated useful lives were 4.8 years for developed technology and 9.9 years for customer relationships.
(3) Goodwill is partially tax deductible. The goodwill amount resulted primarily from our expectation of
synergies from the integration of the acquisitions’ product offerings with our existing product offerings.
Fiscal 2011 acquisitions
Identity and Authentication Business of VeriSign, Inc.
On August 9, 2010, we completed the acquisition of the identity and authentication business of VeriSign,
which included a controlling interest in VeriSign Japan and equity interests in certain other subsidiary entities. In
exchange for the assets and liabilities of the acquired business, we paid a total purchase price of $1.29 billion,
which consisted of $1.16 billion in cash, net of $128 million cash acquired, and working capital adjustments of
$3 million. No equity interests were issued. The results of operations of the identity and authentication business
of VeriSign are included since the date of acquisition as part of the Security and Compliance segment.
Supplemental pro forma information for VeriSign was not material to our financial results and therefore not
included. For fiscal 2011, we recorded acquisition-related transaction costs of $11 million, which were included
in general and administrative expense.
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