Symantec 2006 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2006 Symantec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
Fiscal 2004 Acquisitions
During fiscal 2004, we acquired two public and two privately-held companies for a total of $311 million in
cash, including acquisition-related expenses resulting from financial advisory, legal, and accounting services,
duplicate sites, and severance costs. An insignificant amount of acquisition-related expenses remains as an
accrual as of March 31, 2006. 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. ON Technology Corp. and PowerQuest, Inc. are included in our Storage and Server Management
segment, and SafeWeb, Inc. and Nexland, Inc. are included in our Enterprise Security segment. Details of the
purchase price allocations related to our fiscal 2004 acquisitions are included in the table below. Our fiscal
2004 acquisitions were considered insignificant for pro forma financial disclosure, both individually and in the
aggregate.
Nexland SafeWeb PowerQuest ON Technology Total
(In thousands)
Acquisition dateÏÏÏÏÏÏÏÏ July 17, 2003 Oct 15, 2003 Dec 5, 2003 Feb 13, 2004
Net tangible assets
(liabilities) ÏÏÏÏÏÏÏÏÏÏ $ (2,507) $ 366 $ 16,125 $ 14,420 $ 28,404
Acquired product rightsÏÏ 1,000 1,000 19,600 7,410 29,010
Other intangible assets ÏÏ 60 Ì 2,400 5,660 8,120
IPR&D ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,000 Ì 1,600 1,110 3,710
Goodwill ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,791 21,603 114,352 70,463 227,209
Deferred tax asset, net ÏÏ 547 3,600 270 10,293 14,710
Total purchase price ÏÏÏÏ $ 20,891 $ 26,569 $ 154,347 $ 109,356 $311,163
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 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 estimated lives of two to seven years. The IPR&D was written off on the acquisition date.
Note 4. Goodwill, Acquired Product Rights, and Other Intangible Assets
Goodwill
In accordance with SFAS No. 142, we allocate goodwill to our reporting units, which are the same as our
operating segments. Goodwill is allocated as follows:
Storage &
Enterprise Server Data Consumer
Security Management Protection Services Products Total
(In thousands)
Balance as of March 31, 2005 $1,017,622 $ 193,192 $ Ì $ 149,183 $ 5,216 $ 1,365,213
Goodwill acquired through the
Veritas acquisitionÏÏÏÏÏÏÏÏÏ Ì 3,439,107 4,986,706 171,955 Ì 8,597,768
Goodwill acquired through
other acquisitionsÏÏÏÏÏÏÏÏÏÏ 287,280 31,748 Ì Ì 62,737 381,765
Operating segment
reclassification(a) ÏÏÏÏÏÏÏÏÏ 116,543 Ì Ì (116,543) Ì Ì
Goodwill adjustments(b) ÏÏÏÏÏ (10,584) 405 Ì (3,522) Ì (13,701)
Balance as of March 31, 2006 $1,410,861 $3,664,452 $4,986,706 $ 201,073 $67,953 $10,331,045
90