Acer 2007 Annual Report Download - page 91

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88
- 82 -
For the years ended December 31, 2006 and 2007, amortization of intangible assets amounted
to NT$184,802 and NT$353,864, respectively, and was recognized under operating expenses.
On October 15, 2007, the Company completed the acquisition of 100% ownership of Gateway,
Inc., a personal computer company in the U.S., through its indirectly wholly owned subsidiary
AAH at a price of US$1.90 (dollars) per share. The total purchase price amounted to
US$711,420 thousand.
The acquisition was accounted for in accordance with ROC SFAS No. 25 “Business
Combinations”. The Consolidated Companies recognized goodwill which represents the
excess of the purchase price and direct transaction cost of US$13,293 thousand over the fair
value of the net identifiable tangible and intangible assets.
The following represents the allocation of the purchase price to the acquired net assets of
Gateway, Inc.:
NT$ NT$
Purchase Price: 23,507,016
The identifiable assets acquired and liabilities assumed:
Current assets 32,139,646
Investments carried at cost 277,057
Property, plant, and equipment 2,808,517
Intangible assetsЁtrademarks and trade names 5,504,220
Intangible assetsЁcustomer relationships 1,551,042
Intangible assetsЁothers 1,687,210
Other assets 58,355
Current liabilities (24,576,616)
Long-term liabilities (9,673,377)
Other liabilities (2,923,302) 6,852,752
Goodwill 16,654,264
The Gateway trademark and trade name have an indefinite life, and accordingly, are not
subject to amortization. The eMachine trademark and trade name are being amortized using
the straight-line method over 20 years, the estimated period in which the economic benefits
will be consumed. Customer relationships are being amortized using the straight-line
method over the estimated useful life of 10 years.
The following unaudited pro forma consolidated results of operations assume that the
acquisition of Gateway, Inc. was completed as of January 1 for each of the fiscal years shown
below.
2006 2007
NT$ NT$ US$
Revenues 451,202,888 531,041,545 16,372,485
Consolidated net income from continuing
operations before income tax 16,229,757 16,023,724 494,026
Consolidated net income from continuing
operations after income tax 13,635,814 13,086,851 403,479
Basic earnings per common share (in dollars) 5.77 5.54 0.17
(13) Other financial assetsЁnoncurrent
December 31, 2006 December 31, 2007
NT$ NT$ US$
Refundable deposits 813,807 687,109 21,185
Noncurrent receivables 480,537 274,284 8,456
1,294,344 961,393 29,641