Cisco 2013 Annual Report Download - page 96

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(c) Pending Acquisition of Sourcefire, Inc.
In the fourth quarter of fiscal 2013, the Company announced that it had entered into a definitive agreement to acquire
Sourcefire, Inc. (“Sourcefire”), a leader in intelligent cybersecurity solutions. Sourcefire delivers innovative, highly automated
security through continuous awareness, threat detection and protection across its portfolio, including next-generation intrusion
prevention systems, next-generation firewalls, and advanced malware protection. With the Sourcefire acquisition the Company
aims to accelerate its security strategy of defending, discovering, and remediating advanced threats to provide continuous
security solutions to the Company’s customers in more places across the network.
Under the agreement, the Company has agreed to pay approximately $2.7 billion in cash and retention-based incentives to
acquire Sourcefire. The acquisition is expected to close in the second half of calendar 2013 and is subject to customary closing
conditions, including a regulatory review. Upon close of the acquisition, revenue from Sourcefire will be included in the
Company’s Security product category.
4. Goodwill and Purchased Intangible Assets
(a) Goodwill
The following table presents the goodwill allocated to the Company’s reportable segments as of July 27, 2013 and July 28,
2012, as well as the changes to goodwill during fiscal 2013 and 2012 (in millions):
Balance at
July 28, 2012
NDS
Acquisition
Other
Acquisitions Other
Balance at
July 27, 2013
Americas ............................................... $11,755 $1,230 $ 828 $(13) $13,800
EMEA ................................................. 3,287 1,327 411 12 5,037
APJC .................................................. 1,956 887 230 9 3,082
Total .............................................. $16,998 $3,444 $1,469 $ 8 $21,919
Balance at
July 30, 2011 Acquisitions Other
Balance at
July 28, 2012
Americas ............................................... $11,627 $136 $ (8) $11,755
EMEA ................................................. 3,272 64 (49) 3,287
APJC .................................................. 1,919 37 — 1,956
Total ............................................... $16,818 $237 $(57) $16,998
In fiscal 2013, the column entitled “Other” primarily includes purchase accounting adjustments and a goodwill reduction
related to divestiture activity. In fiscal 2012, “Other” primarily includes foreign currency translation and purchase accounting
adjustments.
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