Business Acquisition (Tables)

12 Months Ended

Dec. 28, 2014

Dec. 29, 2013

Schedule of Business Acquisition Purchase Price

The total aggregate consideration to acquire Fusion-io was $1.26 billion and comprised of the following (in thousands):



	Purchase Price
Cash consideration	$	1,256,502
Fair value of assumed equity attributed to pre-combination service	7,041
Total purchase price	$	1,263,543

The total aggregate consideration to acquire SMART Storage was $305.1 million and comprised of the following (in thousands):



	Purchase Price
Cash consideration	$	304,982
Fair value of assumed stock options attributed to pre-combination service	136
Total purchase price	$	305,118

Fair Value Inputs of Assumed Equity Awards

The weighted-average fair value of the assumed unvested stock option awards was $35.02 and was determined using the Black-Scholes-Merton valuation model and included the following assumptions:



Dividend yield	1.14%
Expected volatility	0.32
Risk-free interest rate	1.00%
Weighted average expected life	2.6 years

The weighted-average fair value of the assumed unvested stock option awards was $41.15 and was determined using the Black-Scholes-Merton valuation model and included the following assumptions:



Dividend yield	1.60%
Expected volatility	0.32
Risk-free interest rate	0.33%
Weighted average expected life	1.4 years

Allocation of purchase price to tangible assets acquired and liabilities assumed

The following table presents the fair values of the tangible and intangible assets acquired and liabilities assumed from, and goodwill attributed to, the Fusion‑io acquisition as of July 23, 2014, and reflects adjustments made during the open measurement period to finalize the purchase accounting (in thousands):



Cash	$	190,336
Accounts receivable, net	67,666
Inventory	76,780
Deferred tax asset, net	54,490
Finite-lived intangible assets	382,000
IPR&D	61,000
Goodwill	513,398
Other assets	30,498
Other current liabilities	(94,016		)
Other non-current liabilities	(18,609		)
Total purchase price	$	1,263,543

The following table presents the fair values of the tangible and intangible assets acquired and liabilities assumed from, and goodwill attributed to, the SMART Storage acquisition as of August 22, 2013, and reflects adjustments made through the measurement period to finalize the purchase accounting (in thousands):



Cash	$	1,423
Accounts receivable, net	7,827
Inventory	29,331
Deferred taxes - current	921
Other current assets	28,002
Property and equipment	5,734
Deferred taxes - non-current	3,338
Finite-lived intangible assets	162,200
IPR&D	6,300
Goodwill	115,594
Other assets	149
Accounts payable	(11,746		)
Other current liabilities	(34,976		)
Other non-current liabilities	(8,979		)
Total purchase price	$	305,118

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table presents the fair value of the intangible assets acquired (in thousands):



	Weighted-Average Useful Lives	Fair Value
Intangible assets:
Developed technology	5 years	$	271,000
Customer relationships	1.5 years	57,000
Trademark and trade names	5 years	54,000
IPR&D		61,000
Total intangible assets acquired, excluding goodwill		$	443,000

The following table presents the fair value of the intangible assets acquired (in thousands):



	Weighted-Average Useful Lives	Fair Value
Intangible assets:
Developed technology	4 years	$	146,100
Trademark and trade names	4 years	8,500
Customer relationships	2 years	7,600
IPR&D		6,300
Total intangible assets acquired, excluding goodwill		$	168,500