Raytheon 2014 Annual Report Download - page 98

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
89
We allocated the initial purchase price for the acquisition as follows:
(In millions) Purchase Price
Allocation
Current assets $ 34
Other non-current assets —
Property, plant and equipment, net 4
Goodwill 301
Intangible assets 126
Current liabilities (34)
Other long-term liabilities (4)
Fair value of net assets acquired $ 427
In June 2013, we acquired Visual Analytics, Incorporated, subsequently renamed Raytheon Visual Analytics Incorporated.
RVAI further extends our capabilities to meet the data analytics, data visualization and information sharing needs of our
customers, and this acquisition is part of our strategy to enhance our Intelligence, Information and Services (IIS) offerings.
In connection with this acquisition, we have recorded $12 million of goodwill, primarily related to expected synergies from
combining operations and the value of the existing workforce, and $3 million of intangible assets, primarily related to
technology and customer relationships with a weighted-average life of seven years.
In December 2012, we acquired the Government Solutions business of SafeNet, Inc., subsequently renamed Raytheon Secure
Information Systems, LLC (RSIS) for approximately $280 million in cash, net of cash acquired and exclusive of retention
payments. RSIS was integrated into our Space and Airborne Systems (SAS) business, within the Integrated Communications
Systems product line as the Secure Information Systems product area. RSIS provides advanced encryption capabilities needed
by government and industry customers to protect classified data. In connection with this transaction we have recorded $195
million of goodwill related to expected synergies from combining operations and the value of the existing workforce, and
$75 million of intangible assets, primarily related to technology with a weighted-average life of eight years.
Additionally, in 2012 we acquired Teligy, Inc., subsequently renamed Raytheon Teligy, Inc., and an Australian company,
Poseidon Scientific Instruments Pty Ltd., for an aggregate of $22 million in cash, net of cash acquired. Raytheon Teligy, Inc.
further extends our cybersecurity offerings in wireless communications at Intelligence, Information and Services (IIS). The
Poseidon Scientific Instruments Pty Ltd. acquisition is part of our strategy to extend and enhance our Integrated Defense
Systems (IDS) offerings. In connection with these acquisitions we recorded $15 million of goodwill, primarily related to
expected synergies from combining operations, and $5 million of intangible assets, primarily related to customer relationships
and technology with a weighted-average life of six 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.
The total amount of goodwill that is expected to be deductible for tax purposes related to these acquisitions was $489 million
at December 31, 2014.