Note 3 - Acquistion

12 Months Ended

Dec. 31, 2011

Acquisition [Abstract]

Acquisition

Acquisition

In December 2010, we acquired all of the outstanding equity of Avalon Microelectronics, Inc. ("Avalon"), a leading provider of FPGA based Optical Transport Network solutions, for cash consideration of $8.0 million, net of acquired cash. This acquisition supports our strategy to increase resources and funding to develop, license, and deliver more IP cores, frameworks, and reference designs to our targeted markets. In connection with the acquisition, we are required to pay future installments of $7.5 million to Avalon's former shareholder over the four-year service period required by this arrangement, contingent upon the continued employment of this individual by Altera. Approximately $1.8 million was recognized as compensation expense in our consolidated statement of income for the year ended December 31, 2011.

The following amounts represent the fair value of the identifiable assets acquired and liabilities assumed:

(In thousands)	Amount			Amortization life (in years)
Current assets, net of cash acquired	$	1,902
Fixed and other long-term assets, net	729
Identified intangible assets:
Completed technology	5,670			6 to 10
Customer relationships	910			5 to 6
Backlog	730			1
Goodwill	2,329
Total assets acquired	12,270
Deferred tax liabilities	(3,550		)
Other liabilities assumed	(716		)
Net assets acquired	$	8,004