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Veloce
9 Months Ended
Dec. 31, 2014
Variable Interest Entity, Measure of Activity [Abstract]  
VELOCE
VELOCE
On June 20, 2012, the Company completed its acquisition of Veloce. Veloce has been developing specific ARM-based technology for the Company.
The total estimated purchase price consideration to be paid for Veloce is approximately $178.5 million based on the benchmarks achieved during product simulations. Veloce completed all three performance milestones relating to the project as of March 31, 2014. The consideration relating to the three performance milestones, excluding the value allocated to Veloce stock equivalents that have not yet been allocated to individuals ("Unallocated Veloce Units"), in the amount of $176.4 million, has been recognized as research and development expense through December 31, 2014 compared to $169.3 million as of December 31, 2013. During the three and nine months ended December 31, 2014, the Company paid approximately $1.5 million and $9.0 million, respectively, in cash and issued approximately 39,000 shares and 0.1 million shares, of common stock, respectively, valued at approximately $0.3 million and $0.9 million, respectively, as part of the Veloce acquisition consideration. During the three and nine months ended December 31, 2013, the Company paid approximately $1.2 million and $45.4 million, respectively, in cash and issued approximately 25,000 shares and 3.8 million shares, of common stock, respectively, valued at approximately $0.2 million and $29.2 million, respectively, as part of the Veloce acquisition consideration. The Company is contractually required to distribute all Unallocated Veloce Units within a certain time period. No Unallocated Veloce Units were distributed in the three months ended December 31, 2014. During the nine months ended December 31, 2014, the Company distributed 0.5 million Unallocated Veloce Units which had a related expense of $7.1 million. Former Veloce equity holders subject to vesting requirements will receive their distribution upon satisfaction of such vesting requirements.
For accounting purposes, the costs incurred in connection with the development milestones relating to Veloce are considered compensatory and are recognized as R&D expense. These costs are recognized in the Condensed Consolidated Statement of Operations under R&D expense in the periods when certain development and performance milestones became probable of achievement and were deemed earned. However, the value allocated to the Unallocated Veloce Units will not be recognized as R&D expense until distribution of the underlying units occurs. As of December 31, 2014, 0.1 million Unallocated Veloce Units had not been allocated, and the maximum potential additional expense to be recognized associated with these Unallocated Veloce Units is approximately $2.1 million.
Total R&D expenses recognized related to Veloce were zero and approximately $7.1 million during the three and nine months ended December 31, 2014, respectively, and approximately $2.9 million and $42.7 million during the three and nine months ended December 31, 2013, respectively. Veloce consideration that has been accrued as of December 31, 2014 is classified as long-term if payments of the consideration are expected to occur beyond a 12 month period. For additional information regarding Veloce, see Note 4, Veloce, to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014.