Autodesk 2003 Annual Report Download - page 34

Equity in net loss of affiliate. In August 2001 we acquired the remaining 60 percent interest in Buzzsaw
that we did not own. Consequently, from the date of the acquisition, Buzzsaw’s on-going revenues and costs and
expenses have been included in each of the respective line items in our consolidated statements of income.
We recognized equity in net losses of $1.2 million in fiscal 2002 and $16.3 million in fiscal 2001,
representing our proportionate share of Buzzsaw’s losses during those periods. In April 2000 we invested $17.5
million in Buzzsaw and maintained a 40 percent interest. Loss recognition was suspended during the first quarter
of 2002, after we fully expensed all previous investments in Buzzsaw.
Business Combinations
Over the past three years, we acquired new technology or supplemented our technology by purchasing
businesses focused in specific markets or industries. During this time period, we acquired the following businesses:
Date Company and Purchase Consideration Details
December 2002 truEInnovations, Inc.
$1.7 million in cash
truEInnovations, Inc. developed file and data
management software that is very tightly integrated
into our Autodesk Inventor Series environment. The
truEInnovations, Inc. acquisition has been integrated
with our Manufacturing Solutions Division.
September 2002 CAiCE Software Corporation
$10.0 million in cash
This acquisition allows us to expand our presence in
the transportation software market as well as enhance
our core civil design industry business. The CAiCE
acquisition has been integrated with our Infrastructure
Solutions Division.
April 2002 Revit Technology Corporation
$139.5 million, of which $133.0
million was in cash
This acquisition provides us with parametric building
information modeling technology and provides us
with potential next generation technology. The Revit
acquisition has been integrated with our Building
Solutions Division.
October 2001 Software Division of Media 100
$16.0 million in cash
This acquisition provides us with streaming media
technology, cleaner brand encoding software,
production and editing tools. This business has been
integrated with our Discreet segment.
August 2001 Buzzsaw, Inc.
$28.3 million of which $15.0
million was in cash
We acquired the remaining 60 percent of stock in
Buzzsaw that we did not own. This acquisition
provides us with leading online project collaboration
applications to improve efficiencies and reduce costs
for the building industry. Buzzsaw’s results are
reported in the Platform Technology Division and
Other.
These acquisitions were all accounted for under the purchase method of accounting pursuant to Statement of
Financial Accounting Standards No. 141, “Business Combinations.”
Of these acquisitions, $3.2 million of the Media 100 purchase price was allocated to in-process research and
development (“IPR&D”) and was expensed immediately since the technology had not yet reached technological
feasibility and no alternative future uses could be identified.
As of the acquisition date, the IPR&D substantially consisted of the Hitman product, an enterprise encoding
system that automates the encoding process and allows for the encoding of multiple jobs at the same time. The
Hitman product was 75 percent complete at the time, with $0.4 million of estimated remaining costs to reach
technological feasibility. We recently released this product with actual costs to complete that approximated the
initial $0.4 million estimate.
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