NVIDIA 2009 Annual Report Download - page 102

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NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Note 6 – Business Combinations
On February 10, 2008, we acquired Ageia Technologies, Inc., or Ageia, an industry leader in gaming physics technology. The
combination of the graphics processing unit, or GPU, and physics engine brands is expected to enhance the visual experience of the
gaming world. The aggregate purchase price consisted of total consideration of approximately $29.7 million.
On November 30, 2007, we completed our acquisition of Mental Images, Inc., or Mental Images, an industry leader in
photorealistic rendering technology. The aggregate purchase price consisted of total consideration of approximately $88.3 million. The
total consideration also includes approximately $7.8 million which reflects an initial investment we made in Mental Images in prior
periods and $5.6 million primarily towards guaranteed payments subsequent to completion of our acquisition.
We allocated the purchase price of each of these acquisitions to tangible assets, liabilities and identifiable intangible assets
acquired, as well as IPR&D, if identified, based on their estimated fair values. The excess of purchase price over the aggregate fair
values was recorded as goodwill. The fair value assigned to identifiable intangible assets acquired was based on estimates and
assumptions made by management. Purchased intangibles are amortized on a straight-line basis over their respective useful lives.
As of January 25, 2009, the estimated fair values of the purchase price allocated to assets we acquired and liabilities we
assumed on the respective acquisition dates were as follows:
Mental Images Ageia
Fair Market Values (In thousands)
Cash and cash equivalents $ 988 $ 1,744
Marketable securities - 28
Accounts receivable 1,462 911
Prepaid and other current assets 214 1,149
Property and equipment 830 169
In-process research and development 4,000 -
Goodwill 59,252 19,198
Intangible assets:
Existing technology 14,400 13,450
Customer relationships 6,500 170
Patents 5,000 -
Trademark 1,200 900
Total assets acquired 93,846 37,719
Current liabilities (1,243) (6,969)
Acquisition related costs (1,313) (1,030)
Long-term liabilities (2,970) -
Total liabilities assumed (5,526) (7,999)
Purchase price allocation $ 88,320 $ 29,720
85
Source: NVIDIA CORP, 10-K, March 13, 2009 Powered by Morningstar® Document Research℠