ACQUISITIONS

Acquisitions completed in fiscal year 2012

The purchase price allocation for acquisitions completed in fiscal year 2012 is set forth in the table below and reflects various preliminary fair value estimates and analysis, including preliminary work performed by third-party valuation specialists, which are subject to change within the measurement period (up to one year from the acquisition date) as valuations are finalized. The primary areas of the preliminary purchase price allocation that are not yet finalized are the determination of the deferred tax assets and liabilities and residual goodwill.

Pro forma results of operations for these acquisitions have not been presented because they are not material to Maxim's consolidated results of income, either individually or in the aggregate. Revenue and earnings per share for the acquired businesses since the date of acquisition through June 30, 2012 were not provided as they are not material. Goodwill, which represents the excess of the purchase price over the net tangible and intangible assets acquired, is not expected to be deductible for tax purposes. Acquisition costs for fiscal year 2012 were not material.

Aggregate preliminary purchase price allocation for acquisitions made by Maxim during fiscal year 2012 is as follows:



	SensorDynamics			Other acquisitions			Total
				(in thousands)
Tangible assets	$	18,692		$	1,159		$	19,851
Debt assumed	(29,078		)	—			(29,078		)
Other liabilities assumed	(37,559		)	(4,729		)	(42,288		)
Net liabilities assumed	(47,945		)	(3,570		)	(51,515		)
Amortizable intangible assets	20,900			17,840			38,740
IPR&D	19,600			—			19,600
Goodwill (1)	130,594			38,392			168,986
Total purchase price (1)	$	123,149		$	52,662		$	175,811

(1) Includes $11.4 million of contingent consideration relating to the other acquisitions discussed further below.

The following table presents details of the Company's intangible assets acquired through business combinations completed during fiscal year 2012 (in thousands, except years):



	Intellectual Property			Customer Relationships			Trademark			Total
	Weighted Average Useful Life (in Years)	Amount		Weighted Average Useful Life (in Years)	Amount		Weighted Average Useful Life (in Years)	Amount
SensorDynamics	7.0	$	16,400	7.0	$	4,100	3.0	$	400	$	20,900
Other acquisitions	9.2	15,340		3.0	2,500		—	—		17,840
Total		$	31,740		$	6,600		$	400	$	38,740
Weighted Average (in Years)	8.1			5.5			3.0

SENSORDYNAMICS

On July 18, 2011, the Company acquired SensorDynamics, a semiconductor company that develops proprietary sensor and microelectromechanical solutions. SensorDynamics is based in Lebring, near Graz, Austria. The purpose of the acquisition was to allow Maxim to combine sensors with analog products. The total cash consideration associated with the acquisition was approximately $123.1 million. The Company expects that none of the goodwill associated with the acquisition will be deductible for tax purposes.

OTHER ACQUISITIONS

The Company acquired three other companies during fiscal year 2012, the biggest of which is a company that develops low power high performance analog circuits. The total cash consideration associated with the acquisition was approximately $41.3 million. Maxim also recorded $11.4 million, representing the fair value of contingent consideration that would be payable in the future should certain specified project milestones be met. Total contingent consideration that could be paid out under the agreement amounts to $16.0 million. The contingent consideration was calculated based on probabilities that were developed regarding the likelihood that the product development milestones would be met and when the contingent payments would occur. Based on these factors, a probability weighted earnout amount was calculated and discounted (at the cost of debt) to present value.

Acquisitions in fiscal year 2011

Aggregate purchase price allocation for Maxim's fiscal year 2011 acquisitions:



	Phyworks			Other acquisitions			Total
				(In thousands)
Tangible assets	$	5,676		$	662		$	6,338
Liabilities assumed	(17,524		)	(818		)	(18,342		)
Net liabilities assumed	(11,848		)	(156		)	(12,004		)
Amortizable intangible assets	50,800			1,750			52,550
IPR&D	5,800			2,580			8,380
Goodwill (1)	26,606			14,187			40,793
Total purchase price (1)	$	71,358		$	18,361		$	89,719

(1) Includes $8.8 million of contingent consideration relating to one of the other acquisitions discussed further below

The following table presents details of the Company's intangible assets acquired through business combinations completed during fiscal year 2011 (in thousands, except years):



	Intellectual Property			Customer Relationships			Backlog			Trademark			Total
	Weighted Average Useful Life (in Years)	Amount		Weighted Average Useful Life (in Years)	Amount		Weighted Average Useful Life (in Years)	Amount		Weighted Average Useful Life (in Years)	Amount
Phyworks	5.0	$	47,100	5.0	$	1,600	1.3	$	1,900	1.0	$	200	$	50,800
Other acquisitions	3.0	1,750		—	—		—	—		—	—		1,750
Total		$	48,850		$	1,600		$	1,900		$	200	$	52,550
Weighted Average (in Years)	4.9			5.0			1.3			1.0

PHYWORKS

On September 7, 2010, the Company acquired Phyworks Limited, a developer of high-speed communications integrated circuits. The Company expects that none of the goodwill associated with the acquisition will be deductible for tax purposes. No supplemental pro forma information is presented for the acquisition due to the immaterial effect of the acquisition on the Company's results of operations.

OTHER ACQUISITIONS

During fiscal year 2011, the Company completed two other acquisitions, the biggest of which is a developer of highly integrated, analog, mixed-signal solutions, as well as design methods and flows for analog system-on-a-chip (SoCs). The total cash consideration associated with the acquisition was $8.2 million. The acquired assets included cash of $0.4 million. Maxim also recorded $8.8 million, representing the fair value of contingent consideration that would be payable in the future should certain specified project milestones be met. Total contingent consideration that could be paid out under the agreement amounts to $12.5 million. As of June 30, 2012, Maxim has paid $4.1 million relating to contingent consideration.