Seagate 2014 Annual Report Download - page 80
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
Thefollowingtableshowsthefairvalueoftheseparatelyidentifiableintangibleassetsatthetimeofacquisitionandtheperiodoverwhicheachintangible
assetwillbeamortized:
Thegoodwillrecognizedisprimarilyattributabletothesynergiesexpectedtoariseaftertheacquisition,andisnotdeductibleforincometaxpurposes.
TheCompanyincurredatotalof$10millionofexpensesrelatedtotheacquisitionofXyratexinfiscalyear2014,whichareincludedwithinMarketingand
administrativeexpenseontheConsolidatedStatementofOperations.
TheamountsofrevenueandearningsofXyratexincludedintheCompany'sConsolidatedStatementofOperationsfromtheacquisitiondatethroughtheend
offiscalyearendedJune27,2014arenotsignificant.
LaCieS.A.
OnAugust3,2012theCompanyacquired23,382,904(orapproximately64.5%)oftheoutstandingsharesofLaCieS.A.("LaCie")forapriceof€4.05per
sharewithapricesupplementof€0.12pershare,whichwouldhavebeenpayableiftheCompanyhadsuccessfullyacquiredatleast95%oftheoutstandingshares
ofLaCiewithin6monthsoftheacquisition.Oftheamountpaidattheacquisitiondate,€9millionistreatedascompensationcosttooneoftheselling
shareholders,whowasanemployeeoftheCompany,toberecognizedoveraperiodof36monthsfromtheacquisitiondate,andmayberefundedtotheCompany
ifthesellingshareholderisnolongeremployedattheendofthatperiod.ThetransactionandrelatedagreementsareexpectedtoacceleratetheCompany'sgrowth
strategyintheexpandingconsumerstoragemarket,particularlyinEurope,Japanandinpremiumdistributionchannels.
Theacquisition-datefairvalueoftheconsiderationtransferredforthebusinesscombinationtotaled$111million,includingcashpaidof$107million,and
contingentconsiderationof$4million.
77
(Dollarsinmillions) FairValue
Weighted-Average
Amortization
Period
Existingtechnology $ 23 5.5years
Customerrelationships 18 3.9years
Totalamortizableintangibleassetsacquired 41 4.8years
In-processresearchanddevelopment 39
Totalacquiredidentifiableintangibleassets $ 80