Business Combinations

3 Months Ended

Oct. 25, 2014

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

The Company completed two business combinations during the three months ended October 25, 2014. A summary of the allocation of the total purchase consideration is presented as follows (in millions):

	Purchase Consideration		Net Liabilities Assumed			Purchased Intangible Assets		Goodwill
Metacloud, Inc.	$	149	$	(7	)	$	29	$	127
Other	38		(10		)	29		19
Total acquisitions	$	187	$	(17	)	$	58	$	146

On September 29, 2014, the Company completed its acquisition of Metacloud, Inc. ("Metacloud"), a provider of private clouds for global organizations. With its acquisition of Metacloud, the Company aims to advance its Intercloud strategy to deliver a globally distributed, highly secure cloud platform capable of meeting customer demands.

The total purchase consideration related to the Company’s business combinations completed during the three months ended October 25, 2014 consisted of cash consideration along with vested share-based awards assumed. The total cash and cash equivalents acquired from these business combinations was approximately $3 million. Total transaction costs related to the Company’s business combination activities were $2 million and $6 millionfor the three months ended October 25, 2014 and October 26, 2013, respectively. These transaction costs were expensed as incurred in general and administrative (G&A) expenses in the Consolidated Statements of Operations.

The Company’s purchase price allocation for business combinations completed during recent periods is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information, which existed as of the acquisition date but at that time was unknown to the Company may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred.

The goodwill generated from the Company’s business combinations completed during the three months ended October 25, 2014 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.

The Consolidated Financial Statements include the operating results of each business combination from the date of acquisition. Pro forma results of operations for the acquisitions completed during the three months ended October 25, 2014 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company’s financial results.