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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date:
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 fiscal year 2012, the Company recorded adjustments to the 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 about facts and circumstances that
existed at the acquisition date.
The $432 million of goodwill recognized is attributable primarily to the benefits the Company expects to derive from enhanced scale and
efficiency to better serve its markets and expanded customer presence in China and Southeast Asia. Except for approximately $4 million of
goodwill relating to assembled workforce in Korea, none of the goodwill is expected to be deductible for income tax purposes.
The Company incurred a total of $22 million of expenses related to the acquisition of Samsung in fiscal year 2012, which are included
within Marketing and administrative expense on the Consolidated Statement of Operations.
79
(Dollars in millions)
Amount
Inventories
$
141
Equipment
76
Intangible assets
580
Other assets
28
1
1
1
1
Total identifiable assets acquired
825
1
1
1
1
Warranty liability
(72
)
Other liabilities
(45
)
1
1
1
1
Total liabilities assumed
(117
)
Net identifiable assets acquired
708
Goodwill
432
1
1
1
1
Net assets acquired
$
1,140
1
1
1
1
(Dollars in millions)
Fair Value
Weighted
-
Average
Amortization
Period
Existing technology
$
137
2.0 years
Customer relationships
399
5.8 years
1
1
1
1
1
Total amortizable intangible assets acquired
536
4.8 years
In
-
process research and development
44
Total acquired identifiable intangible assets
$
580
1
1
1
1
1
1
1
1
1
1