EMC 2010 Annual Report Download - page 59

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The following represents the allocation of the Isilon purchase price (table in thousands):
Trade accounts receivable (approximates contractual value) $ 38,565
Other current assets 17,448
Property and equipment 8,678
Intangible assets:
Developed technology (weighted-average useful life of 3.1 years) 115,300
Customer maintenance relationships (weighted-average useful life of 6.6 years) 142,900
Customer product relationships (weighted-average useful life of 4.3 years) 159,600
Tradename (weighted-average useful life of 2.4 years) 7,700
IPR&D 43,900
Total intangible assets 469,400
Goodwill 1,974,536
Current liabilities (51,910)
Income tax payable (272)
Deferred revenue (37,800)
Deferred income taxes (90,758)
Total purchase price $ 2,327,887
The total weighted-average amortization period for intangible assets is 4.6 years. The intangible assets are being amortized over the pattern in which the
economic benefits of the intangible assets are being utilized, which in general reflects the cash flows generated from such assets. The goodwill associated with
this acquisition is reported within our Information Storage segment. None of the goodwill is deductible for tax purposes. The goodwill results from expected
synergies from the transaction, including complementary products that will enhance our overall product portfolio, which we believe will result in incremental
revenue and profitability.
Other 2010 Acquisitions
In the first quarter of 2010, we acquired all of the outstanding capital stock of Archer Technologies, LLC, a provider of governance, risk and
compliance software. This acquisition complements and expands our RSA Information Security segment. Additionally, VMware acquired two businesses,
Zimbra and RTO Software, Inc.
In the second quarter of 2010, VMware acquired two businesses, Rabbit Technologies, Ltd. and GemStone Systems, Inc.
In the third quarter of 2010, we acquired all of the outstanding capital stock of Greenplum, Inc., a provider of disruptive data warehousing technology.
This acquisition complements and expands our Information Storage segment. Additionally, VMware acquired two businesses, Integrien and Tricipher.
In the fourth quarter of 2010, we acquired all of the capital stock of Bus-Tech, Inc., a provider of information infrastructure solutions. This acquisition
complements and expands our Information Storage segment.
The aggregate purchase price, net of cash acquired for all 2010 acquisitions, excluding Isilon, was $895.4 million, which consisted of $893.5 million of
cash and $1.9 million in fair value of our stock options issued in exchange for the acquirees' stock options and resulted in goodwill of $631.4 million.
The fair value of our stock options for all acquisitions in 2010 was estimated assuming no expected dividends and the following weighted-average
assumptions:
Expected term (in years) 2.0
Expected volatility 29.0%
Risk-free interest rate 0.7%
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