Symantec 2012 Annual Report Download - page 160

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
The following table presents the purchase price allocation included in our Consolidated Balance Sheets
(in millions):
Net tangible assets(1) .......................................................... $ 178
Intangible assets(2) ........................................................... 628
Goodwill(3) ................................................................. 602
Net tax liabilities ............................................................ (38)
Noncontrolling interest in VeriSign Japan(4) ....................................... (85)
Total purchase price .......................................................... $1,285
(1) Net tangible assets included deferred revenue, which was adjusted down from $286 million to $68 million,
representing our estimate of the fair value of the contractual obligation assumed for the support of the
authentication business.
(2) Intangible assets included customer relationships of $226 million, developed technology of $123 million
and tradenames of $5 million, which are amortized over their estimated useful lives of 18 months to nine
years. The weighted-average estimated useful lives were 8.0 years for customer relationships and 9.0 years
for developed technology. Intangible assets also included indefinite-lived tradenames and trademarks of
$274 million.
(3) Goodwill is partially tax deductible. The goodwill amount resulted primarily from our expectation of
synergies from the integration of VeriSign product offerings with our existing product offerings.
(4) The fair value of the noncontrolling interest was calculated on a market basis using the closing stock price
of VeriSign Japan on the date of acquisition.
PGP Corporation
On June 4, 2010, we completed the acquisition of PGP Corporation (“PGP”), a nonpublic provider of email
and data encryption software. In exchange for all of the voting equity interests of PGP, we paid a total purchase
price of $306 million, which consisted of $299 million in cash, net of $7 million cash acquired. The results of
operations of PGP are included since the date of acquisition as part of the Security and Compliance segment.
Supplemental pro forma information for PGP was not material to our financial results and therefore not included.
For fiscal 2011, we recorded acquisition-related transaction costs of $1 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):
Net tangible assets(1) ........................................................... $ 7
Intangible assets(2) ............................................................. 74
Goodwill(3) ................................................................... 225
Total purchase price ........................................................... $306
(1) Net tangible assets included deferred revenue, which was adjusted down from $55 million to $9 million,
representing our estimate of the fair value of the contractual obligation assumed for support services.
(2) Intangible assets included customer relationships of $29 million, developed technology of $39 million, and
definite-lived tradenames of $3 million, which are amortized over their estimated useful lives of two to eight
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