Business Combinations

12 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Acquisitions

13. Business Combinations

Doremi Technologies

On October 31, 2014 ("acquisition date"), we completed our acquisition of all outstanding interests of Doremi Technologies, LLC ("Doremi"), a privately held company, and certain assets related to the business of Doremi from Doremi Labs, Inc. and Highlands Technologies SAS (the “Doremi-related assets”) for cash consideration of $98.4 million and up to an additional $20.0 million in contingent consideration that may be earned over a four-year period following the closing of the acquisition. Upon acquisition, the fair value of the contingent consideration liability was estimated to be $0.7 million, and based on revisions to initial estimates, the fair value of this liability was remeasured to $0.1 million as of September 25, 2015 and to zero as of September 30, 2016.

The following table summarizes the purchase price allocation made to the net tangible and intangible assets acquired (including cash of $8.4 million), and liabilities assumed based on their acquisition date fair values, with the excess amount recorded as goodwill, which is representative of the expected benefits from the integration of Doremi's technologies and assembled workforce (in thousands):

Purchase Price Allocation
Current assets	$	17,231
Inventories	16,372
Intangible assets	45,600
Goodwill	39,672
Current liabilities	(11,653		)
Non-current liabilities	(8,820		)
Cash consideration paid to sellers	98,402
Add: contingent consideration	740
Total purchase consideration	$	99,142

The following table summarizes the fair values allocated to the various intangible assets acquired (in

thousands), the weighted-average useful lives over which they will be amortized using the straight-line method, and

the classification of their amortized expense in our consolidated statements of operations. The value of these acquired

intangibles was determined based on the present value of estimated future cash flows under various valuation

techniques and inputs.

Intangible Assets Acquired	Purchase Price Allocation		Weighted-Average Useful Life (Years)	Income Statement Classification: Amortization Expense
Customer relationships	$	25,600	10	Sales & Marketing
Developed technology	17,500		7.5	Cost of Sales
Trade name	1,300		1	Sales & Marketing
Backlog	1,200		1	Cost of Sales
Total	$	45,600

Total acquisition-related costs incurred in connection with the transaction were $0.4 million and $5.9 million during fiscal 2015 and 2014, respectively. These costs were included in G&A expenses in our consolidated statements of operations. Pro forma financial information has not been presented for any period since the impact of the Doremi acquisition was not material.