Autodesk 2008 Annual Report Download - page 157

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Customer relationships represent the underlying relationships with Robobat’s existing customers. Goodwill
represents the excess of the purchase price over the fair value of the acquired net tangible and intangible assets,
and is deductible for tax purposes. Deferred revenue represents the estimated fair value of the support and
maintenance obligations assumed from Robobat in connection with this acquisition. Autodesk estimates that
these support and maintenance obligations will be substantially fulfilled by the end of fiscal 2009. Autodesk
management approved a restructuring plan directly resulting from the Robobat acquisition and involving the
elimination of employees of Robobat (“Robobat Restructuring Plan”). The total restructuring reserve established
for this plan was reflected as an allocation item in the total purchase price consideration of the acquisition. The
Robobat Restructuring Plan was established in accordance with Emerging Issues Task Force Issue No. 95-3,
“Recognition of Liabilities in Connection with a Purchase Business Combination” (“EITF 95-3”). The total
estimated cost of the Robobat Restructuring Plan was $0.9 million for severance and outplacement costs.
NavisWorks
In June 2007, Autodesk acquired NavisWorks (UK) Limited (“NavisWorks”), a privately-held company, for
cash consideration of approximately $26.0 million and a note payable of $2.6 million due in June 2008. Autodesk
incorporated NavisWorks into the Architecture, Engineering and Construction Division of the Design Solutions
Segment. NavisWorks provides 3D coordination, collaboration and sequencing in design and construction. This
acquisition is intended to increase the interoperability of Autodesk’s 3D model-based design software by
coordinating design information from multiple sources.
Management’s preliminary allocation of the purchase price consideration, based on a valuation of the
acquired assets and liabilities, is as follows:
NavisWorks:
Developed technologies (6 year useful life) .......................................... $ 6.5
Customer relationships (6 year useful life) .......................................... 5.5
Trade name (6 year useful life) ................................................... 0.6
In-process research and development .............................................. 1.0
Goodwill ..................................................................... 9.3
Deferred revenue .............................................................. (1.1)
Net tangible assets ............................................................. 7.3
$29.1
In-process research and development represents incomplete NavisWorks research and development projects
that had not reached technological feasibility and had no alternative future use as of the acquisition date, and was
recorded during the second quarter of fiscal 2008 in research and development on the Consolidated Statement of
Income.
Customer relationships represent the underlying relationships and agreements with NavisWorks’ existing
customers. Trade name represents the estimated fair value of NavisWorks’ trade name and trademarks. The $9.3
million of goodwill, which represents the excess of the purchase price over the fair value of the acquired net
tangible and intangible assets, is deductible for tax purposes. Deferred revenue represents the estimated fair value
of the support and maintenance obligations assumed from NavisWorks in connection with this acquisition.
Autodesk estimates that these support and maintenance obligations will be substantially fulfilled by the
beginning of fiscal 2009.
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2008 Annua
l Report