Raytheon 2011 Annual Report Download - page 96

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
88
We allocated the purchase price for this acquisition as follows:
(In millions)
Current assets
Other non-current assets
Property, plant and equipment, net
Goodwill
Intangible assets
Current liabilities
Other long-term liabilities
Fair value of net assets acquired
Purchase Price
Allocation
$ 72
3
15
387
89
(29)
(37)
$ 500
Additionally, in 2011 we acquired Henggeler Computer Consultants Inc., Pikewerks Corporation and substantially all of the
assets of Ktech Corporation for an aggregate of $145 million in cash, net of cash acquired. The Henggeler Computer Consultants
Inc. and Pikewerks Corporation acquisitions enhance our cybersecurity and information assurance capabilities at Intelligence
and Information Systems (IIS). The Ktech Corporation acquisition is part of our strategy to extend and enhance our Missile
Systems (MS) offerings. In connection with these acquisitions, we have preliminary recorded $112 million of goodwill,
primarily related to expected synergies from combining operations and the value of the existing workforce, and $26 million
of intangible assets, primarily related to customer relationships, trade names and technology with an initial estimated weighted-
average life of seven years. We expect to complete the purchase price allocation process for the Henggeler Computer
Consultants Inc. and Pikewerks Corporation acquisitions in the first quarter of 2012 when we receive final valuation results
and complete our review.
In 2010, we acquired Trusted Computer Solutions Inc., Technology Associates Inc. and substantially all of the assets of an
Australian company, Compucat Research Pty. Ltd, for an aggregate of $152 million in cash, net of cash acquired. These
acquisitions enhance our cybersecurity and information assurance capabilities at Intelligence and Information Systems (IIS).
In connection with these acquisitions, we recorded $125 million of goodwill, primarily related to expected synergies from
combining operations and the value of the existing workforce, and $28 million of intangible assets, primarily related to
technology, trade names and customer relationships with a weighted-average life of five years.
In 2009, we acquired BBN Technologies Corp. and related entities (BBN) which enhances our advanced networking, speech
and language technologies, information technologies, sensor systems and cybersecurity at Network Centric Systems (NCS)
for $334 million in cash, net of $22 million of cash acquired, exclusive of retention and management incentive payments. In
connection with this acquisition, we recorded $254 million of goodwill, primarily related to expected synergies from combining
operations and the value of the workforce, and $70 million in intangible assets, primarily related to technology, contractual
backlog and trade name with a weighted-average life of eight years.
Pro forma financial information and revenue from the date of acquisition has not been provided for these acquisitions as they
are not material either individually or in the aggregate.
We funded each of the above acquisitions using cash on hand. The operating results of these businesses have been included
in our consolidated results as of the respective closing dates of the acquisitions. The purchase price of these businesses has
been allocated to the estimated fair value of net tangible and intangible assets acquired, with any excess purchase price recorded
as goodwill. We completed these acquisitions to enhance our technology and cybersecurity portfolio.
The total amount of goodwill that is expected to be deductible for tax purposes related to these acquisitions was $143 million
at December 31, 2011.