IBM 2007 Annual Report Download - page 81

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79
Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
2005
In 2005, the company completed 16 acquisitions at an aggregate cost
of $2,022 million, which was paid in cash. The cost of these acquisi-
tions are reported in the Consolidated Statement of Cash Flows net
of acquired cash and cash equivalents. The table on page 80 represents
the purchase price allocations for all of the 2005 acquisitions. The
Ascential Corporation (Ascential) acquisition is shown separately
given its significant purchase price.
($ in millions)
MICROMUSE, INC.
ORIGINAL AMOUNT
AMORTIZATION DISCLOSED IN PURCHASE TOTAL FILENET
2006 ACQUISITIONS LIFE (IN YEARS) FIRST QTR. 2006 ADJUSTMENTS* ALLOCATION CORPORATION
Current assets $ 201 $ 56 $ 257 $ 681
Fixed assets/noncurrent 8 — 8 69
Intangible assets:
Goodwill N/A 694 137 831 894
Completed technology 3 to 5 46 — 46 73
Client relationships 3 to 7 46 — 46 194
Other identifiable intangible assets 2 to 4 4 — 4 55
In-process R&D 1 — 1 3
Total assets acquired 1,000 193 1,193 1,969
Current liabilities (89) (193) (282) (252)
Noncurrent liabilities (49) — (49) (108)
Total liabilities assumed (138) (193) (331) (360)
Total purchase price $ 862 $ — $ 862 $1,609
* Adjustments primarily relate to acquisition costs, deferred taxes and other accruals.
N/A — Not applicable
($ in millions)
AMORTIZATION INTERNET SECURITY MRO OTHER
2006 ACQUISITIONS LIFE (IN YEARS) SYSTEMS, INC. SOFTWARE, INC. ACQUISITIONS
Current assets $ 309 $ 227 $ 28
Fixed assets/noncurrent 62 20 4
Intangible assets:
Goodwill N/A 967 508 211
Completed technology 3 to 5 135 71 8
Client relationships 3 to 7 60 42 22
Other identifiable intangible assets 2 to 4 21 4 4
In-process R&D 3 — —
Total assets acquired 1,557 872 277
Current liabilities (92) (69) (24)
Noncurrent liabilities (97) (64) (13)
Total liabilities assumed (189) (133) (37)
Total purchase price $1,368 $ 739 $240
N/A — Not applicable
Ascential — On April 29, 2005, the company acquired 100 percent
of the outstanding common shares of Ascential for cash consideration
of $1,140 million. Ascential is a provider of enterprise data integration
software used to help build enterprise data warehouses, power busi-
ness intelligence systems, consolidate enterprise applications, create
and manage master repositories of critical business information and
enable on demand data access. Ascential complements and strengthens
the company’s information and integration offerings and further
extends the company’s ability to enable clients to become on demand