Seagate 2012 Annual Report Download - page 82

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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the estimated fair values of the assets acquired, liabilities assumed, and noncontrolling interest 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:
Since the acquisition date, the Company recorded adjustments to the fair value of certain assets acquired and liabilities assumed with
LaCie S.A. that resulted in a net increase of $1 million to Goodwill, and a corresponding decrease in Intangible assets.
The goodwill recognized is attributable primarily to the benefits the Company expects to derive from LaCie's brand recognition and the
acquired workforce, and is not deductible for income tax purposes. The acquisition date fair value of the noncontrolling interest is based on the
market price of their publicly traded shares as of the first trading date subsequent to the acquisition, as the shares did not trade on the acquisition
date.
The Company incurred $1 million of expenses related to the acquisition of LaCie during fiscal year 2013, which are included within
Marketing and administrative expense on the Consolidated Statement of Operations. Additionally, the €0.12 supplement was not paid as only
94.5% of the LaCie business was acquired within six months of the acquisition date, resulting in a reversal of the contingent consideration
liability which was recorded as a reduction of Marketing and administrative expenses of $4 million.
The amounts of revenue and earnings of LaCie included in the Company's Consolidated Statement of Operations from the acquisition date
are not significant.
75
Cash and cash equivalents
$
71
Accounts receivable
29
Marketable securities
27
Inventories
46
Other current and non
-
current assets
19
Property, plant and equipment
12
Intangible assets
45
Goodwill
13
Total assets
262
Accounts payable and accrued expenses
(73
)
Current and non
-
current portion of long
-
term debt
(6
)
Total liabilities
(79
)
Noncontrolling interest
(72
)
Total
$
111
(Dollars in millions)
Fair Value
Weighted
-
Average
Amortization
Period
Customer relationships
$
31
5.0 years
Existing technology
1
5.0 years
Trade name
13
5.0 years
Total acquired identifiable intangible assets
$
45