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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
expected to improve the Company's position as a supplier of 2.5-inch products; position the Company to better address rapidly evolving
opportunities in markets including, but not limited to, mobile computing, cloud computing and solid state storage; expand the Company's
customer access in China and Southeast Asia; and accelerate time to market for new products.
The acquisition-date fair value of the consideration transferred totaled $1,140 million, which consisted of $571 million of cash, $10 million
of which was paid as a deposit upon signing the APA in the fourth quarter of fiscal year 2011, and 45.2 million ordinary shares with a fair value
of $569 million. The fair value of the ordinary shares issued was determined based on the closing market price of the Company's ordinary shares
on the acquisition date, less a 16.5% discount for lack of marketability as the shares issued are subject to a restriction that limits their trade or
transfer for approximately a one year period.
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date
(in millions):
The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which
each intangible asset will be amortized:
During the six months ended June 29, 2012, the Company recorded adjustments to the preliminary fair value of certain assets acquired and
liabilities assumed with the Samsung HDD business that resulted in a net decrease of $5 million to Goodwill. These adjustments included a
$7 million increase in Other assets for spare parts and a $3 million increase to Equipment, offset by a $3 million increase in Warranty liability
and a $2 million increase in Other liabilities related to certain assumed vendor obligations. These adjustments were based on information
obtained in the current period about facts and circumstances that existed at the acquisition date.
75
Inventories
$
141
Equipment
76
Intangible assets
580
Other assets
28
Total identifiable assets acquired
825
Warranty liability
(72
)
Other liabilities
(45
)
Total liabilities assumed
(117
)
Net identifiable assets acquired
708
Goodwill
432
Net assets acquired
$
1,140
(Dollars in millions)
Fair Value
Weighted
-
Average
Amortization
Period
Existing technology
$
137
2.0 years
Customer relationships
399
5.8 years
Total amortizable intangible assets acquired
536
4.8 years
In
-
process research and development
44
Total acquired identifiable intangible assets
$
580