Symantec 2011 Annual Report Download - page 149

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The following table presents the purchase price allocation included in our Consolidated Balance Sheets (in
millions):
Net tangible assets
(1)
....................................................... $ 7
Intangible assets
(2)
........................................................ 74
Goodwill
(3)
.............................................................. 225
Total purchase price ....................................................... $306
(1)
Net tangible assets included deferred revenue, which was adjusted down from $55 million to $9 million,
representing our estimate of the fair value of the contractual obligation assumed for support services.
(2)
Intangible assets included customer relationships of $29 million, developed technology of $39 million, and
definite-lived tradenames of $3 million, which are amortized over their estimated useful lives of two to eight
years. The weighted-average estimated useful lives were 8.0 years for customer relationships, 5.0 years for
developed technology, and 2.0 years for definite-lived tradenames. Intangible assets also included indefinite-
lived in-process research and development (“IPR&D”) of $3 million.
(3)
Goodwill is not tax deductible. The goodwill amount resulted primarily from our expectation of synergies from
the integration of PGP product offerings with our product offerings.
Other Fiscal 2011 acquisitions
During fiscal 2011, in addition to VeriSign and PGP, we completed the acquisitions of GuardianEdge
Technologies, Inc. (“GuardianEdge”) and two other businesses for an aggregate of $91 million in cash, including
$1 million in assumed equity awards at fair value. The results of operations for the acquired companies have been
included in the Security and Compliance segment since their respective acquisition dates. Supplemental pro forma
information for these acquisitions was not material to our financial results and was therefore not included. For fiscal
2011, we recorded acquisition-related transaction costs of $2 million, which were included in general and
administrative expense.
The following table presents the purchase price allocation included in our Consolidated Balance Sheets (in
millions):
GuardianEdge Others Total
Acquisition date .................................... June 3, 2010 Various
Net tangible assets
(1)
................................. $ 3 $ — $ 3
Intangible assets
(2)
.................................. 30 6 36
Goodwill
(3)
........................................ 40 12 52
Total purchase price ................................. $ 73 $ 18 $91
(1)
Net tangible assets included deferred revenue, which was adjusted down from $17 million to $2 million,
representing our estimate of the fair value of the contractual obligation assumed for support services.
(2)
Intangible assets included customer relationships of $24 million and developed technology of $12 million,
which are amortized over their estimated useful lives of three to nine years. The weighted-average estimated
useful lives were 9.0 years for customer relationships and 5.0 years for developed technology.
(3)
Goodwill is partially tax deductible. The goodwill amount resulted primarily from our expectation of synergies
from the integration of the acquisitions’ product offerings with our product offerings.
79
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)