Autodesk 2008 Annual Report Download - page 160

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and is not indicative of the results of operations that would have been achieved if the acquisition had taken place
at the beginning of each of the periods presented. The unaudited pro forma financial information in fiscal 2006
combines the historical financial results of Autodesk for the year ended January 31, 2006 and the historical
financial results of Alias for the period from February 1, 2005 to January 9, 2006. Autodesk’s Consolidated
Statements of Income for fiscal year 2006 include Alias’ financial results for the period from the acquisition date,
January 10, 2006, through January 31, 2006. The pro forma financial information presented includes the business
combination accounting effects of amortization charges from acquired intangible assets, stock-based
compensation charges for unvested options assumed, an adjustment to reduce the carrying value of Alias’
deferred balance, adjustments to depreciation on acquired property and related tax effects.
Fiscal Year Ended
January 31, 2006
(unaudited)
Total net revenues ..................................................... $1,632.2
Net income ........................................................... 329.4
Basic net income per share .............................................. 1.44
Diluted net income per share ............................................. 1.33
Other Acquisitions
In addition, during the year ended January 31, 2008, Autodesk completed seven other acquisitions,
including Hanna Strategies Holdings, Inc. (“Hanna Strategies”), for approximately $83.7 million, net of cash
acquired. Management’s preliminary allocation of the purchase price consideration, based on a valuation of the
acquired assets and liabilities, is as follows:
Other Acquisitions:
Developed technologies (2.5 - 6.5 year useful life) .................................... $12.8
Customer relationships (5.0 - 8.5 year useful life) ..................................... 6.6
Trade name (2.5 - 4.0 year useful life) .............................................. 0.5
In-process research and development .............................................. 2.7
Goodwill ..................................................................... 50.3
Net tangible assets ............................................................. 10.8
$83.7
In-process research and development represents incomplete research and development projects that had not
reached technological feasibility and had no alternative future use as of the acquisition date. The total in-process
research and development amount was recorded during fiscal 2008 in research and development on the
Consolidated Statement of Income.
Customer relationships represent the underlying relationships and agreements with the acquirees’ existing
customers. Trade name represents the estimated fair value of the acquirees’ trade names and trademarks. The
$50.3 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.
Autodesk has not identified any material pre-acquisition contingencies where a liability is probable and the
amount of the liability can be reasonably estimated. If information becomes available prior to the end of the
purchase price allocation period that would indicate that such a liability is probable and that the amounts can be
reasonably estimated, such liability would be included as an adjustment to the purchase price allocation.
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