Memorex 2010 Annual Report Download - page 51

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The purchase price allocation resulted in goodwill of $5.0 million relating to this acquisition. The following table
illustrates our allocation of the purchase price to the assets acquired and liabilities assumed:
Amount
(In millions)
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.4
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.0)
$ 7.3
Goodwill impairment charges of $3.0 million and $2.0 million were recorded during the years ended December 31,
2010 and 2008, respectively.
Our allocation of the purchase price to the assets acquired and liabilities assumed resulted in the recognition of the
following intangible assets:
Amount
Weighted
Average
Life
(In millions)
Trade names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.1 10 years
Intellectual property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 6 years
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 7 years
Non-compete. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 3 years
$4.6
The effects of the acquisition did not materially impact our 2008 results of operations. Therefore, pro forma
disclosures are not included.
Imation Corporation Japan
On March 16, 2008, we completed the acquisition of the 40 percent minority interest in Imation Corporation Japan
(ICJ). The purchase price for the acquisition was $8.0 million, which was paid in cash. The transaction was accounted for
using the step acquisition method which requires the allocation of the excess purchase price to the fair value of net assets
acquired. The excess purchase price is determined as the difference between the cash paid and the historical book value
of the interest in net assets acquired.
The following table presents the excess purchase price over historical book value:
Amount
(In millions)
Cash consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8.0
Interest acquired in historical book value of ICJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.1)
Excess purchase price over historical book value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.9
48
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)