Autodesk 2007 Annual Report Download - page 187

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2007 Annual Report
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 15. Business Combinations (Continued)
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 certain key employees. This amount is being recorded as compensation expense over
the two year period from the acquisition date 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:
c-Plan AG (“c-plan”)
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 was payable over the next year and was contingent upon the continued employment
of a key employee. This amount was allocated to compensation expense in the subsequent period in
which it was 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.