Symantec 2011 Annual Report Download - page 150

Fiscal 2010 acquisitions
During fiscal 2010, we completed two acquisitions of nonpublic companies for an aggregate of $42 million in
cash. No equity interests were issued. We recorded goodwill in connection with each of these acquisitions, which
resulted primarily from our expectation of synergies from the integration of the acquired company’s technology
with our technology. The goodwill for these acquisitions is only partially tax deductible, if at all. The results of
operations for the acquired companies have been included in our results of operations since their respective
acquisition dates. These acquisitions are included in our Security and Compliance segment.
The following table presents the purchase price allocation included in our Consolidated Balance Sheets (in
millions):
Acquisition date ....................................................... Various
Net tangible assets (liabilities)............................................. $ —
Intangible assets
(1)
..................................................... 18
Goodwill ............................................................ 24
Total purchase price .................................................... $ 42
(1)
Intangible assets included customer relationships of $13 million and developed technology of $5 million, which
are amortized over their estimated useful lives of four to eleven years. The weighted-average estimated useful
lives were 10.0 years for customer relationships and 4.0 years for developed technology.
Fiscal 2009 acquisitions
MessageLabs
On November 14, 2008, we completed the acquisition of MessageLabs Group Limited (“MessageLabs”), a
nonpublic United Kingdom-based provider of on-line services to protect, control, encrypt, and archive electronic
communications. The acquisition complements our SaaS business. In exchange for all of the voting equity interests
of MessageLabs, we paid the following (in millions):
Cash paid for acquisition of common stock outstanding, excluding cash acquired .......... $632
Acquisition-related transaction costs ........................................... 8
Total purchase price ....................................................... $640
The results of operations for MessageLabs are included since the date of acquisition as part of the Security and
Compliance segment. Supplemental proforma information for MessageLabs was not material to our financial
results and was therefore not included. The purchase price was subject to an adjustment of up to an additional
$13 million in cash due to estimates in the initial purchase price that were not finalized. As a result, subsequent to
the acquisition date, the Company paid an additional $10 million to the seller which was allocated to Goodwill.
The following table presents the purchase price allocation (in millions):
Net tangible assets
(1)
....................................................... $ 20
Intangible assets
(2)
........................................................ 170
Goodwill
(3)
.............................................................. 480
Deferred tax liability....................................................... (30)
Total purchase price ....................................................... $640
(1)
Net tangible assets included deferred revenue, which was adjusted down from $34 million to $10 million,
representing our estimate of the fair value of the contractual obligation assumed for support services.
80
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)