Autodesk 2006 Annual Report Download - page 118

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for unvested options assumed, adjustment to reduce the carrying value of Alias’ deferred balance, adjustments
to depreciation on acquired property and related tax effects.
Year Ended January 31,
2006 2005
(unaudited)
Total net revenues ................................................ $1,618.2 $1,299.5
Net income ....................................................... $ 324.7 $ 206.8
Basic net income per share ....................................... $ 1.42 $ 0.91
Diluted net income per share .................................... $ 1.31 $ 0.84
c-plan AG (“c-plan”)
In June 2005, Autodesk acquired c-plan, a privately-held Swiss company, for cash consideration of
$24.1 million. Of this amount, $2.2 million is payable over two years and is contingent on the continued
employment of key employees. This amount will be recorded as compensation expense in future periods as it
is incurred and is, therefore, excluded from the total purchase price consideration. Autodesk incorporates c-plan’s
family of geospatial applications and data management solutions into its Infrastructure Lifecycle Management
solution offerings.
This acquisition expands Autodesk’s geospatial technology product portfolio and strengthens its market
position throughout central Europe.
Management’s allocation of the purchase consideration, based on a valuation of the acquired assets and
liabilities performed in part by a third-party appraiser, is as follows:
Net tangible assets ........................................ $ 8.2
Developed technology (5 year useful life) ................. 4.2
Customer relationships (6 year useful life) ................ 2.6
Trade name (2 year useful life) ............................ 0.2
Goodwill ................................................... 7.0
Deferred revenue .......................................... (0.3)
$21.9
The goodwill balance of $7.0 million was assigned to the Infrastructure Solutions Division of Autodesk’s
Design Solutions Segment and is not deductible for tax purposes. This asset is attributed to the premium paid
for the established data management products.
The deferred revenue balance of $0.3 million reflects the estimated fair value of the support obligation
assumed from c-plan in connection with the acquisition.
Colorfront Ltd. (“Colorfront”)
In June 2005, Autodesk acquired certain assets of Colorfront Ltd., a developer of color correction technology
for film studios and digital film laboratories, for cash consideration of $15.2 million. Of this amount, $0.7 million
is payable over the next year and is contingent upon the continued employment of a key employee. This amount
will be allocated to future compensation expense in the period in which it is incurred and is, therefore, excluded
from the total purchase price consideration. In addition, $0.5 million was recorded as royalty expense during fiscal
2006 related to the settlement of a pre-existing royalty agreement with Colorfront.
This acquisition provides Autodesk with comprehensive new expertise in film laboratory processes, digital
post-production, color science, image processing and hardware platform optimization.
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 10. Business Combinations (Continued)
72