Citrix 2007 Annual Report Download - page 43

and related agreements, other than in respect of such agreements themselves and as disclosed in this Annual
Report on form 10-K .
Revenues from the products acquired in the Ardence Acquisition and the XenSource Acquisition, or
together, the 2007 Acquisitions, are primarily included in our Product License revenue. The 2007 Acquisitions
results of operations have been included in our consolidated results of operations beginning after the date of the
respective acquisitions.
Purchase Accounting for the 2007 Acquisitions
Under the purchase method of accounting, the purchase prices for the 2007 Acquisitions were allocated to
the acquired companies’ net tangible and intangible assets based on their estimated fair values as of the date of
the completion of the acquisitions. The allocation of the total purchase prices are summarized below (in
thousands):
Ardence XenSource
Purchase Price
Allocation
Asset
Life
Purchase Price
Allocation
Asset
Life
Current assets ................................. $ 6,326 $ 19,177
Property and equipment ......................... 917 Various 1,224 Various
In-process research and development ............... 1,200 8,600
Other assets ................................... — 112
Intangible assets ............................... 22,160 1-7 years 146,440 2-8 years
Goodwill ..................................... 43,187 Indefinite 214,299 Indefinite
Assets acquired ................................ 73,790 389,852
Current liabilities assumed ....................... (10,851) (4,179)
Long-term liabilities assumed ..................... (2,673) —
Deferred tax liabilities, non-current ................ (8,577) (57,214)
Net assets acquired, including direct transaction
costs ....................................... $51,689 $328,459
Current assets acquired in connection with the Ardence Acquisition consisted mainly of accounts receivable
and current assets acquired in connection with the XenSource Acquisition consisted mainly of short-term
deferred tax assets and to a lesser extent, accounts receivable. Current liabilities acquired in the acquisition of
Ardence consisted primarily of short-term debt and other accrued expenses and current liabilities acquired in the
XenSource Acquisition consisted primarily of other accrued expenses. Long-term liabilities acquired in the
Ardence Acquisition consisted primarily of facilities related costs. Of the goodwill related to the 2007
Acquisitions, approximately $184.5 million was assigned to our Americas segment, approximately $62.0 was
assigned to our Europe, Middle East and Africa, or EMEA, segment and approximately $11.0 million was
assigned to our Asia-Pacific segment. The goodwill is not deductible for tax purposes. Please refer to Note 12 to
our consolidated financial statements included in this Annual Report on Form 10-K for the year ended
December 31, 2007.
2006 Acquisitions
During 2006, we acquired all of the issued and outstanding capital stock of two privately held companies,
Reflectent Software, Inc., a provider of solutions to monitor the real-time performance of client-server, Web and
desktop applications from an end-user perspective, and Orbital Data Corporation, a provider of solutions that
optimize the delivery of applications over wide area networks, together the 2006 Acquisitions. The 2006
Acquisitions strengthen our Citrix Delivery Center products which are designed to offer comprehensive solutions
across all dimensions of application delivery. The total consideration for the 2006 Acquisitions was $68.0 million
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