Seagate 2015 Annual Report Download - page 81
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
3.Acquisitions
DotHillSystemsCorp.
OnOctober6,2015,theCompanyacquiredalloftheoutstandingsharesofDotHillSystemsCorp.("DotHill"),asupplierofsoftwareandhardwarestorage
systems.TheCompanypaid$9.75pershare,or$674million,incashfortheacquisition.TheacquisitionofDotHillfurtherexpandstheCompany'sOEM-focused
cloudstoragesystemsbusinessandadvancestheCompany'sstrategicefforts.
Thefollowingtablesummarizestheestimatedfairvaluesoftheassetsacquiredandliabilitiesassumedattheacquisitiondate:
Thefollowingtableshowsthefairvalueoftheseparatelyidentifiableintangibleassetsatthetimeofacquisitionandtheperiodoverwhicheachintangible
assetwillbeamortized:
Therecognizedgoodwill,whichisnotdeductibleforincometaxpurposes,isprimarilyattributabletocostsynergiesexpectedtoariseaftertheacquisitionand
thebenefitstheCompanyexpectstoderivefromenhancedmarketopportunities.
TheexpensesrelatedtotheacquisitionofDotHillforthefiscalyearendedJuly1,2016,whichareincludedwithinMarketingandadministrativeexpenseon
theConsolidatedStatementofOperations,arenotsignificant.
TheamountsofrevenueandearningsofDotHillincludedintheCompany'sConsolidatedStatementofOperationsfromtheacquisitiondatewerenot
significant.
78
(Dollarsinmillions) Amount
Cashandcashequivalents $ 40
Accountsreceivable,net 48
Inventories 21
Othercurrentandnon-currentassets 7
Property,plantandequipment 10
Intangibleassets 252
Goodwill 364
Totalassets 742
Accountspayable,accruedexpensesandother (68)
Totalliabilities (68)
Total $ 674
(Dollarsinmillions) FairValue
Weighted-Average
Amortization
Period
Existingtechnology $ 164 5.0years
Customerrelationships 71 7.0years
Tradenames 3 5.0years
Totalamortizableintangibleassetsacquired 238 5.5years
In-processresearchanddevelopment 14
Totalacquiredidentifiableintangibleassets $ 252