Symantec 2013 Annual Report Download - page 178

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
(2) Intangible assets included customer relationships of $226 million, developed technology of $123 million
and trade names of $5 million, which are amortized over their estimated useful lives of 18 months to nine
years. The weighted-average estimated useful lives were 8.0 years for customer relationships and 9.0 years
for developed technology. Intangible assets also included indefinite-lived trade names and trademarks of
$274 million.
(3) Goodwill is partially tax deductible. The goodwill amount resulted primarily from our expectation of
synergies from the integration of VeriSign product offerings with our existing product offerings.
(4) The fair value of the noncontrolling interest was calculated on a market basis using the closing stock price
of VeriSign Japan on the date of acquisition.
PGP Corporation
On June 4, 2010, we completed the acquisition of PGP Corporation (“PGP”), a privately-held provider of
email and data encryption software. In exchange for all of the voting equity interests of PGP, we paid a total
purchase price of $306 million, which consisted of $299 million in cash, net of $7 million cash acquired. The
results of operations of PGP are included since the date of acquisition as part of the Security and Compliance
segment. Supplemental pro forma information for PGP was not material to our financial results and therefore not
included. For fiscal 2011, we recorded acquisition-related transaction costs of $1 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):
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 trade names 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 trade names. 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 existing product offerings.
Others
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 purchase price of $91 million,
which consisted of $81 million in cash, net of $9 million cash acquired, and $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 therefore not included. For fiscal 2011, we recorded
acquisition-related transaction costs of $2 million, which were included in general and administrative expense.
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