EMC 2010 Annual Report Download - page 61

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following represents the allocation of the Data Domain purchase price (table in thousands):
Trade accounts receivable (approximates contractual value) $ 72,455
Other current assets 9,275
Property and equipment 40,403
Intangible assets:
Developed technology (weighted-average useful life of 2.6 years) 106,300
Customer maintenance relationships (weighted-average useful life of 5.8 years) 133,700
Customer product relationships (weighted-average useful life of 4.2 years) 111,500
Tradename (weighted-average useful life of 2.0 years) 6,400
IPR&D 174,600
Total intangible assets 532,500
Other long-term assets 60
Goodwill 1,658,321
Current liabilities (67,212)
Income tax payable (4,671)
Deferred revenue (60,800)
Deferred income taxes (152,818)
Long-term liabilities (10,243)
Total purchase price $ 2,017,270
The total weighted-average amortization period for intangible assets is 4.3 years. The intangible assets are being amortized over the pattern in which the
economic benefits of the intangible assets are being utilized, which in general reflects the cash flows generated from such assets. The goodwill associated with
this acquisition is reported within our Information Storage segment. None of the goodwill is deductible for tax purposes. The goodwill results from expected
synergies from the transaction, including complementary products that will enhance our overall product portfolio, which we believe will result in incremental
revenue and profitability.
Other 2009 Acquisitions
In the second quarter of 2009, we acquired all of the outstanding capital stock of Configuresoft, Inc. ("Configuresoft"), a provider of server
configuration, change and compliance management software. The acquisition complements and expands our server configuration management solutions
within the Information Storage segment.
In the third quarter of 2009, we acquired all of the capital stock of FastScale Technology, Inc., a provider of software platforms and solutions that
optimize deployments for physical, virtual and cloud infrastructures. This acquisition complements and expands our Information Storage segment.
Additionally, we acquired all of the capital stock of Kazeon Systems, Inc., a provider of eDiscovery products and solutions which allow corporations,
legal service providers and law firms to efficiently search, classify and analyze the growing volumes of information dispersed through their networks. This
acquisition complements and expands our Information Intelligence Group segment. VMware acquired the remaining outstanding capital stock of
SpringSource Global, Inc. ("SpringSource"), a leader in enterprise and web application development and management. Through the acquisition of
SpringSource, VMware plans to deliver new solutions that enable companies to more efficiently build, run and manage applications within both internal and
external cloud architectures that can host both existing and new applications. These solutions will extend VMware's strategy to deliver solutions that can be
hosted at customer data centers or at service providers. This acquisition will also support VMware's mission to simplify enterprise information technology and
make customer environments more efficient, scalable and easier to manage. The purchase price for SpringSource, net of cash acquired, was approximately
$372.5 million, which consisted of $356.3 million of cash consideration and $16.2 million for the fair value of VMware stock options granted in exchange for
existing SpringSource options.
In connection with our acquisitions, we had adjustments to the fair value of previously held interests in Data Domain and SpringSource of $25.8 million
which were recognized in other income.
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