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Acquisitions
9 Months Ended
Jul. 30, 2011
Acquisitions [Abstract]  
Acquisitions
Note 16 — Acquisitions
     On June 9, 2011, the Company acquired 100% of the outstanding stock of privately-held Lyric Semiconductor, Inc. (Lyric) of Cambridge, Massachusetts. The acquisition of Lyric allows the Company to implement probability processing in silicon for use in processing analog signals. The acquisition-date fair value of the consideration transferred totaled $27.8 million, which consisted of $14.0 million in initial cash payments at closing and contingent consideration of $13.8 million. The contingent consideration arrangement requires additional cash payments of up to an aggregate of $15 million upon the achievement of certain technological milestones payable during the period from June 2011 through June 2016. The Company estimated the fair value of the contingent consideration arrangement utilizing the income approach. Changes in the fair value of the contingent consideration subsequent to the acquisition date primarily driven by assumptions pertaining to the achievement of the defined milestones will be recognized in earnings in the period of the estimated fair value change. As of July 30, 2011 no contingent payments have been made.
     The Company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition resulting in the recognition of $12.2 million of IPR&D, $18.9 million of goodwill and $3.3 million of deferred taxes. The goodwill recognized is attributable to future technologies that have yet to be determined as well as the assembled workforce of Lyric. Future technologies do not meet the criteria for recognition separately from goodwill because they are a part of future development and growth of the business. None of the goodwill is expected to be deductible for tax purposes.
     In addition, the Company will be obligated to pay royalties on revenue recognized from the sale of Lyric products and licenses through the earlier of 20 years or a maximum of $25 million. Royalty payments require post-acquisition services to be rendered and, as such, the Company will record these amounts as compensation expense in the related periods. As of July 30, 2011, no royalty payments have been made.
     The Company recognized $0.2 million of acquisition related costs that were expensed in the current period. These costs are included in operating expenses in the consolidated income statement.
     The Company has not provided pro forma results of operations for Lyric herein as the acquisition not material to the Company. The Company included the results of operations of this acquisition in its consolidated statement of income from the date of such acquisition.