Cisco 2011 Annual Report Download - page 101

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The total purchase consideration related to the Company’s business combinations completed during fiscal 2011
consisted of either cash consideration or cash consideration along with vested share-based awards assumed. Total
cash and cash equivalents acquired from business combinations completed during fiscal 2011 were
approximately $7 million.
Total transaction costs related to business combination activities during fiscal 2011 and 2010 were $10 million
and $32 million, respectively, which were expensed as incurred and recorded as G&A expenses. The Company
continues to evaluate certain assets and liabilities related to business combinations completed during the
period. Additional information, which existed as of the acquisition date but was at that time unknown to the
Company, may become known to the Company during the remainder of the measurement period, a period not to
exceed 12 months from the acquisition date. Changes to amounts recorded as assets or liabilities may result in a
corresponding adjustment to goodwill.
The goodwill generated from the Company’s business combinations completed during the year ended July 30,
2011 is primarily related to expected synergies. The goodwill is not deductible for U.S. federal income tax
purposes.
Fiscal 2010 and 2009
Allocation of the purchase consideration for business combinations completed in fiscal 2010 is summarized as
follows (in millions):
Fiscal 2010 Shares Issued
Purchase
Consideration
Net Tangible
Assets Acquired/
(Liabilities
Assumed)
Purchased
Intangible
Assets Goodwill
ScanSafe, Inc. ........................... — $ 154 $ 2 $ 31 $ 121
Starent Networks, Corp. ................... — 2,636 (17) 1,274 1,379
Tandberg ASA ........................... — 3,268 17 980 2,271
Other .................................. — 128 2 95 31
Total ............................... — $6,186 $ 4 $2,380 $3,802
Allocation of the purchase consideration for business combinations completed in fiscal 2009 is summarized as
follows (in millions):
Fiscal 2009 Shares Issued
Purchase
Consideration
Net Tangible
Assets Acquired/
(Liabilities
Assumed)
Purchased
Intangible
Assets Goodwill IPR&D
PostPath, Inc. ..................... — $197 $(10) $ 52 $152 $ 3
Pure Digital Technologies, Inc. ....... 27 533 (9) 191 299 52
Pure Networks, Inc. ................ — 105 (4) 30 79 —
Other ........................... — 146 (5) 75 68 8
Total ............................ 27 $981 $(28) $348 $598 $ 63
The Consolidated Financial Statements include the operating results of each business combination from the date
of acquisition. Pro forma results of operations for the acquisitions completed during fiscal 2011, 2010, and 2009
have not been presented because the effects of the acquisitions, individually and in the aggregate, were not
material to the Company’s financial results.
93