IBM 2011 Annual Report Download - page 94

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies92
2009 Acquisitions
($ in millions)
Amortization Life
(in Years) SPSS
Other
Acquisitions
Current assets $ 397 $ 13
Fixed assets/noncurrent assets 20 1
Intangible assets
Goodwill N/A 748 255
Completed technology 4 to 7 105 39
Client relationships 5 to 7 30 20
Other identifiable assets 1 to 7 36 1
Total assets acquired 1,336 330
Current liabilities (157) (34)
Noncurrent liabilities (2) 0
Total liabilities assumed (160) (35)
Total purchase price $1,177 $295
N/A—Not applicable
Other Acquisitions—The Software segment also completed
acquisitions of four privately held companies: in the second quarter,
Outblaze Limited, a messaging software provider, and Exeros, Inc.,
a data discovery firm; in the third quarter, security provider Ounce
Labs, Inc.; and in the fourth quarter, Guardium, Inc., a database
security company. GTS completed an acquisition in the fourth quarter:
RedPill Solutions PTE Limited, a privately held company focused on
business analytics.
Purchase price consideration for the “Other Acquisitions,” as
reflected in the table above, was paid primarily in cash. All acquisitions
were reported in the Consolidated Statement of Cash Flows net of
acquired cash and cash equivalents. For the “Other Acquisitions,”
the overall weighted-average life of the identified intangible assets
acquired was 6.5 years. With the exception of goodwill, these identified
intangible assets will be amortized on a straight-line basis over their
useful lives. Goodwill of $255 million was assigned to the Software
($246 million) and GTS ($10 million) segments. Substantially all of
the goodwill is not deductible for tax purposes.
Divestitures
2011
During the fourth quarter of 2011, the company completed the
divestiture of the iCluster business to Rocket Software. iCluster,
which was acquired in the Data Mirror acquisition in 2007, was
part of the Software business. This transaction was not material
to the Consolidated Financial Statements.
During the second quarter of 2011, the company completed
two divestitures related to subsidiaries of IBM Japan. The impact
of these transactions was not material to the Consolidated Financial
Statements.
2010
On March 31, 2010, the company completed the sale of its activities
associated with the sales and support of Dassault Systemes’
(Dassault) product lifecycle management (PLM) software, including
customer contracts and related assets to Dassault. The company
received net proceeds of $459 million and recognized a net gain
of $591 million on the transaction in the first quarter of 2010. The
gain was net of the fair value of certain contractual terms, certain
transaction costs and the assets and liabilities sold. The gain was
recorded in other (income) and expense in the Consolidated Statement
of Earnings and the net proceeds were reflected in proceeds from
disposition of marketable securities and other investments within
cash flow from investing activities in the Consolidated Statement of
Cash Flows.