Memorex 2012 Annual Report Download - page 62

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
BeCompliant Corporation (doing business as Encryptx)
On February 28, 2011 we acquired substantially all of the assets of BeCompliant Corporation, doing business as
Encryptx (Encryptx), a technology leader in encryption and security solutions for removable storage devices and removable
storage media. The purchase price was $2.3 million, consisting of a cash payment of $1.0 million and the estimated fair value
of future contingent consideration of $1.3 million. The purchase price allocation resulted in goodwill of $1.6 million, primarily
attributable to expected strategic synergies and intangible assets that do not qualify for separate recognition. This goodwill is
deductible for tax purposes. See Note 6 — Intangible Assets and Goodwill for further discussion of this goodwill. During 2012
we paid $0.7 million of the contingent consideration. The final contingent consideration payment of $0.7 million was
determined based on certain 2012 milestones and was paid during the first quarter of 2013 and is the value of the contingent
consideration that is recorded as of December 31, 2012.
Note 5 — Supplemental Balance Sheet Information
As of December 31,
2012 2011
\ (In millions)
Inventories
Finished goods ....................................................... $146.9 $ 186.7
Work in process ...................................................... 6.4 13.5
Raw materials and supplies ............................................. 12.7 8.6
Total inventories .................................................... $166.0 $ 208.8
Other Current Assets
Non-trade receivables .................................................. $ 15.1 $ 4.3
Deferred income taxes (Note 10) .......................................... 4.7 6.1
Prepaid expenses ..................................................... 5.4 6.1
Hedging asset (Note 12) ................................................ 5.5 3.4
Assets held for sale (Note 7) ............................................. 2.5 3.3
Restricted cash(1) .................................................... 7.5 2.2
Other .............................................................. 20.9 24.3
Total other current assets ............................................. $ 61.6 $ 49.7
Property, Plant and Equipment
Land .............................................................. $ 1.2 $ 1.2
Buildings and leasehold improvements ..................................... 95.0 92.6
Machinery and equipment ............................................... 124.8 146.1
Construction in progress ................................................ 1.6 1.5
Total ............................................................ 222.6 241.4
Less accumulated depreciation ........................................... (163.7) (186.0)
Property, plant and equipment, net ...................................... $ 58.9 $ 55.4
Other Assets
Deferred income taxes (Note 10) .......................................... $ 9.3 $ 15.8
Pension assets (Note 9) ................................................ 6.6 5.1
Credit facility fees (Note 11) ............................................. 2.3 0.3
Other .............................................................. 3.9 3.2
Total other assets ................................................... $ 22.1 $ 24.4
(1) Restricted cash at December 31, 2012 primarily includes cash acquired from Nexsan that was previously restricted to
specifically fulfill certain obligations of Nexsan.
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