Note 15. Acquisitions

On March 3, 2011, we completed our acquisition of Vocollect Inc. by acquiring all of the outstanding shares of capital stock of Vocollect and all in-the-money options to purchase shares of common stock of Vocollect for an aggregate purchase price of approximately $197 million in cash, net of cash acquired. Vocollect provides voice-centric solutions for mobile workers in distribution, warehouse, and healthcare environments worldwide through design, manufacture, and sale of voice data collection terminals and related software. This acquisition is part of our strategy to expand our warehouse and mobility solutions.

We have included the financial results of Vocollect in our condensed consolidated financial statements from the date of acquisition. Vocollect acquisition and related costs of approximately $0.3 million and $5.1 million were recorded as an expense for the three and nine months ended October 2, 2011, respectively, and are included in the total acquisition costs of $0.6 million and $5.8 million in our condensed consolidated statement of operations for the three and nine months ended October 2, 2011. Acquisition related costs include direct integration costs, transaction fees, and professional services.

The allocation of the purchase price to Vocollect’s assets acquired and liabilities assumed, net of cash acquired, is as follows (in thousands):



	At Acquisition March 3, 2011 (Adjusted)
Accounts receivable (gross contractual receivables total of $21,461)	$	20,569
Inventories	7,520
Net deferred tax assets	7,880
Other current assets	7,353
Goodwill (including $7.9 million for assembled workforce)	140,162
Intangible assets	67,500
Property, plant and equipment	9,123
Other assets	137
Accounts payable	(6,818		)
Payroll and related expenses	(8,812		)
Deferred revenue	(10,936		)
Accrued expenses	(8,739		)
Deferred tax liabilities	(22,570		)
Long-term deferred revenue	(4,282		)
Other long-term liabilities	(1,370		)
Total net assets acquired	$	196,717

Goodwill recognized was attributable primarily to the expected synergies and the assembled workforce of Vocollect and is not deductible for income tax purposes. Goodwill associated with the Vocollect acquisition was allocated to the Voice solutions reportable segment.

The following table presents the total revenue and net income (loss) for Vocollect, including amortization of intangibles and other purchase accounting charges resulting from the acquisition of Vocollect for the three and nine months ended October 2, 2011 (in thousands):



	Three Months Ended		Nine Months Ended
	October 2, 2011		October 2, 2011
Total revenues	$	30,784	$	71,040
Net income (loss)	129		(6,020		)