Autodesk 2003 Annual Report Download - page 67

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Software Division of Media 100, Inc. (“Media 100”)
During October 2001 Autodesk acquired the software division of Media 100 for $16.0 million in cash. The
acquisition provides Autodesk with streaming media technology for, among other things, the immediate playback
of content over the Internet.
The acquisition was accounted for under the purchase method of accounting pursuant to SFAS 141.
Management’s allocation of the purchase price, which is based on valuations of acquired assets performed by a
third party, is as follows (in thousands):
Inventoryandcomputerhardware ............................................... $ 558
Intangible assets and amounts:
Developed technologies (3 year useful life) .................................... 7,380
Brand names (6 year useful life) ............................................ 620
In-process research and development (“IPR&D”) ................................... 3,180
Goodwill ................................................................... 4,262
$16,000
The value assigned to IPR&D, which was expensed during the third quarter, was determined by identifying
projects in areas where technological feasibility had not been achieved and alternative future uses did not exist.
The $4.3 million of goodwill, which is deductible for tax purposes, was assigned to the Discreet Segment of
Autodesk. The goodwill represented the premium paid to acquire the streaming media technology, which is an
integral part of future products.
Buzzsaw.com, Inc. (“Buzzsaw”)
On August 20, 2001 Autodesk acquired the remaining outstanding stock of Buzzsaw it did not own for
$15.0 million in cash plus the assumption of $13.3 million of liabilities. Prior to the acquisition, Autodesk held a
40 percent interest in Buzzsaw, a privately held company that provided leading online collaboration applications
to improve efficiencies and reduce costs for the building industry. The acquisition of Buzzsaw is part of
Autodesk’s strategy to extend its business to complementary new markets. Buzzsaw’s results of operations,
which are not material in relation to Autodesk, have been included in the consolidated financial statements since
the acquisition date. Prior to the acquisition date, Autodesk accounted for its interest in Buzzsaw using the equity
method of accounting.
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