Autodesk 2008 Annual Report Download - page 158

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Emerging Solutions, Inc. (“Constructware”)
In March 2006, Autodesk acquired Constructware, a privately-held company, for cash consideration of
approximately $45.7 million. Autodesk incorporated Constructware’s collaborative technology solutions into the
Architecture, Engineering and Construction Division of the Design Solutions Segment. This acquisition provides
on-demand communication and collaboration solutions and is intended to enable Autodesk to rapidly expand its
Buzzsaw collaborative project management solution with Constructware’s cost, bid and risk management
capabilities.
Management’s allocation of the purchase price, based on a valuation of acquired assets and liabilities, is as
follows:
Constructware:
Developed technologies (6 year useful life) .......................................... $ 5.1
Customer relationships (7 year useful life) .......................................... 13.0
Customer contracts (7 year useful life) ............................................. 1.1
Trade name (6 year useful life) ................................................... 0.9
Goodwill ..................................................................... 35.9
Deferred revenue .............................................................. (5.1)
Restructuring reserve ........................................................... (0.4)
Net tangible assets ............................................................. (4.8)
$45.7
Customer relationships and customer contracts represent the underlying relationships and agreements with
Constructware’s existing customers. Trade name represents the estimated fair value of the Constructware trade
name and trademarks.
The $35.9 million of goodwill, which represents the excess of the purchase price over the fair value of the
acquired net tangible and intangible assets, is not deductible for tax purposes. Deferred revenue represents the
estimated fair value of the support and maintenance obligations assumed from Constructware in connection with
this acquisition. Autodesk estimates that these support and maintenance obligations will be substantially fulfilled
by fiscal 2010.
Alias Systems Holdings, Inc. (“Alias”)
In January 2006, Autodesk acquired Alias Systems Holdings, Inc., a privately held developer of 3D graphics
technology for total cash consideration of $196.8 million. In addition, Autodesk also assumed all outstanding
unvested options to purchase shares of Alias common stock, which converted into options to purchase 198,405
shares of Autodesk common stock. The fair value of these stock options of $8.1 million increased the total
purchase price consideration. The intrinsic value of these options, which relates to future services, was $8.2
million and was originally recorded as deferred compensation within stockholders’ equity. Deferred
compensation was written off upon the company’s adoption of FAS 123R in fiscal 2007.
The acquisition was integrated into the Manufacturing Solutions Divisions of the Design Solutions Segment
and into the Media and Entertainment Segment.
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