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Acquisitions
6 Months Ended
Apr. 30, 2016
Business Combinations [Abstract]  
Acquisitions
Acquisitions
Current Fiscal Year Acquisitions
In May 2016, the Company completed its acquisition of Ruckus Wireless, Inc. (“Ruckus”), a public company incorporated in the state of Delaware, to strengthen its Internet Protocol (“IP”) Networking product portfolio. For the three and six months ended April 30, 2016, the Company recorded direct acquisition costs and integration costs of $5.0 million and $0.8 million, respectively. These costs were expensed as incurred and are presented in the Company’s Condensed Consolidated Statements of Income for the three and six months ended April 30, 2016, as “Acquisition and integration costs.” For additional discussion, see Note 16, “Subsequent Events,” of the Notes to Condensed Consolidated Financial Statements.
In March 2016, the Company completed its acquisition of a privately held developer of software for data center automation to strengthen its IP Networking product portfolio. The Company does not consider this acquisition to be material to its results of operations or financial position. Therefore, the Company is not presenting pro-forma financial information of combined operations.
Prior Fiscal Year Acquisitions
In March 2015, the Company completed its acquisition of two businesses to strengthen its software networking portfolio. The total aggregate purchase price of the acquisitions was $96.1 million. The total net aggregate purchase price of the acquisitions, net of $0.1 million of cash acquired as part of the acquisitions, was $95.5 million in cash consideration and $0.5 million in non-cash consideration. For the three and six months ended May 2, 2015, the Company recorded direct acquisition costs and integration costs of $1.5 million and $0.8 million, respectively. These costs were expensed as incurred and are presented in the Company’s Condensed Consolidated Statements of Income for the three and six months ended May 2, 2015, as “Acquisition and integration costs.”
The results of operations for both acquisitions are included in the Company’s Condensed Consolidated Statements of Income from the respective dates of acquisition. The Company does not consider these acquisitions to be significant, individually or in the aggregate, to its results of operations or financial position. Therefore, the Company is not presenting pro-forma financial information of combined operations.
In connection with these acquisitions, the Company allocated the total purchase consideration to the net assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition dates. The Company also granted restricted stock unit (“RSU”) awards and cash awards to transferring or continuing employees of the acquired businesses. These awards require the employees to continue providing services to the Company for the duration of the vesting or payout periods.
The RSUs are accounted for as stock-based compensation expense and reported, as applicable, within “Cost of revenues,” “Research and development,” “Sales and marketing,” and “General and administrative” on the Company’s Condensed Consolidated Statements of Income. For the three and six months ended April 30, 2016, the Company recognized $0.4 million and $1.0 million, respectively, of stock-based compensation expense related to these RSU awards. For the three and six months ended May 2, 2015, the Company recognized $0.3 million of stock-based compensation expense related to these RSU awards.
The cash awards are accounted for as employee compensation expense and reported within “Research and development” on the Company’s Condensed Consolidated Statements of Income. For the three and six months ended April 30, 2016, the Company recognized $1.2 million and $2.5 million, respectively, of compensation expense related to these cash awards. For the three and six months ended May 2, 2015, the Company recognized $0.4 million of compensation expense related to these cash awards.