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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
These allocations are preliminary pending the finalization of various estimates and the analysis of income
taxes. The amounts allocated to Acquired product rights are being amortized to Cost of revenues in the
Consolidated Statements of Income over their useful lives of four to five years. The amounts allocated to
Other intangible assets are being amortized to Operating expenses in the Consolidated Statements of Income
over their useful lives of one to eight years. The IPR&D was written off on the acquisition date.
Fiscal 2005 Acquisitions
During fiscal 2005, we acquired five privately-held companies for a total purchase price of $461 million,
including acquisition-related expenses resulting from financial advisory, legal and accounting services,
duplicate sites, and severance costs. The purchase price consisted of $439 million in cash and assumed stock
options valued at $22 million. We recorded goodwill in connection with each of these acquisitions. In each
acquisition, goodwill resulted primarily from our expectation of synergies from the integration of the acquired
company's technology with our technology and the acquired company's access to our global distribution
network. In addition, each acquired company provided a knowledgeable and experienced workforce. The
results of operations of the acquired companies have been included in our operations from the dates of
acquisition. Brightmail Incorporated, TurnTide, Inc., and Platform Logic, Inc. are included in our Enterprise
Security segment and @stake, Inc. and LIRIC Associates are included in our Services segment. Details of the
purchase price allocations related to our fiscal 2005 acquisitions are included in the table below. Our fiscal
2005 acquisitions were considered insignificant for pro forma financial disclosure, both individually and in the
aggregate.
Platform
Brightmail TurnTide @stake LIRIC Logic Total
(In thousands)
Acquisition date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ June 21, 2004 July 7, 2004 Oct 7, 2004 Oct 11, 2004 Dec 9, 2004
Net tangible assets (liabilities)ÏÏÏ $ 23,999 $ (305) $ 4,201 $ 617 $ (221) $ 28,291
Acquired product rightsÏÏÏÏÏÏÏÏÏ 40,020 4,200 9,200 540 3,900 57,860
Other intangible assetsÏÏÏÏÏÏÏÏÏÏ 8,439 60 11,100 6,475 50 26,124
IPR&D ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,480 Ì Ì Ì Ì 3,480
Goodwill ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 226,959 25,933 21,082 9,300 27,206 310,480
Deferred tax asset (liability), net 14,805 (1,704) 3,454 (2,105) (599) 13,851
Deferred stock-based
compensation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21,339 Ì Ì Ì Ì 21,339
Total purchase price ÏÏÏÏÏÏÏÏÏÏÏ $ 339,041 $ 28,184 $ 49,037 $ 14,827 $ 30,336 $461,425
The amounts allocated to Acquired product rights are being amortized to Cost of revenues in the
Consolidated Statements of Income over their estimated lives of one to five years. The amounts allocated to
Other intangible assets are being amortized to Operating expenses in the Consolidated Statements of Income
over their estimated lives of one to eight years. The Deferred stock-based compensation is being amortized to
Operating expenses over the remaining service periods of one to four years. The IPR&D was written off on the
acquisition date.
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