Symantec 2002 Annual Report Download - page 86

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SYMANTEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Acquisition of L-3 Network Security
On March 9, 2000, we acquired the operations of L-3 Network Security for a one-time cash payment of
approximately $20.1 million. The transaction was accounted for as a purchase. In connection with the
transaction, we recorded approximately $3.1 million for acquired in-process research and development,
$12.4 million for goodwill, $3.9 million for acquired product rights and $900,000 for other tangible and
intangible assets. A valuation specialist used our estimates to establish the amount of acquired in-process
research and development. The goodwill, acquired product rights and other intangibles are being amortized
over a Ñve-year period. Commencing in Ñscal 2003, however, the remaining balance of workforce-in-place and
goodwill will no longer be amortized. Instead they will be subject to an annual impairment test in accordance
with SFAS No. 142.
Acquisition of URLabs
On July 21, 1999, we purchased 100% of the outstanding common stock of URLabs for a one-time cash
payment of approximately $42.1 million. The transaction was accounted for as a purchase. In connection with
the transaction, we recorded approximately $1.2 million for acquired in-process research and development,
$37.0 million for goodwill, $5.2 million for acquired product rights, $1.4 million for other intangible assets and
$600,000 for other acquired assets, oÅset by approximately $2.7 million in related income tax liabilities. A
valuation specialist used our estimates to establish the amount of acquired in-process research and
development. The goodwill, acquired product rights and other intangibles are being amortized over a Ñve-year
period. Commencing in Ñscal 2003, however, the remaining balance of workforce-in-place and goodwill will no
longer be amortized. Instead they will be subject to an annual impairment test in accordance with SFAS
No. 142.
The following table outlines the values of the above referenced Ñscal 2000 acquisitions' net tangible and
intangible assets, adjusted for Ñnal purchase price allocations, as certain pre-acquisition contingencies that
existed upon acquisition have been resolved:
Allocated Purchase Price Components
Acquired Acquired Income Other
Purchase In-Process Product Other Tax Assets
Price R&D Rights Goodwill Intangibles Liabilities Acquired
(In thousands)
20/20 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $13,864 $ Ì $ 2,250 $12,437 $ Ì $ (900) $ 77
L-3 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,240 3,100 3,860 12,396 600 Ì 284
URLabs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42,700 1,200 5,210 37,000 1,400 (2,710) 600
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $76,804 $4,300 $11,320 $61,833 $2,000 $(3,610) $961
Pro Forma (unaudited)
The following summary of pro forma results of operations data during Ñscal 2001 and 2000 are presented
as if the AXENT acquisition had occurred at the beginning of Ñscal 2000. The pro forma information excludes
$22.3 million of acquired in-process research and development. The pro forma information has been prepared
64