Business Combinations (Tables)

9 Months Ended

Oct. 03, 2015

Summary of Fair Value of Assets and Liabilities

The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition (in thousands):


Cash and cash equivalents	$	100,338
Accounts receivable, net (1)		439,821
Inventories, net		263,526
Deferred income taxes		117,147
Other current assets		21,905
Property and equipment		123,365
Other intangibles, net		994,421
Other long-term assets		49,593
Deferred revenue		(172,135	)
Tax liabilities		(9,410	)
Other current liabilities (2)		(369,777	)
Long-term deferred revenue		(102,633	)
Unrecognized tax benefits		(9,526	)
Other long-term liabilities		(24,884	)
Long-term deferred income taxes		(211,851	)

Total identifiable net assets	$	1,209,900

(1)	Based on the purchase price allocations, accounts receivable estimated fair value is $439.8 million and gross contractual value is $460.6 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected.

(2)	Other current liabilities include accounts payable, customer reserves, and employee compensation and related benefits.

Summary of Balance Sheet Adjustment and Effect on Income if Provisional Amounts Were Recognized at Acquisition Date

The following table summarizes the fair value balance sheet adjustments recorded during the third quarter of 2015 as well as the amount of adjustments to the current period income statement line items relating to the income effects that would have been recognized in previous periods if the adjustments to provisional amounts were recognized as of the acquisition date (in thousands):


	Increase/ (decrease) in fair value				Effect on Income Before Income Taxes for the Three Months Ended
Balance Sheets	Increase/ (decrease) in fair value			Statements of Operations	December 31, 2014			April 4, 2015			July 4, 2015		Total
Other intangibles	$	(20,000	)	Amortization of intangibles	$	764		$	1,146		$	1,146	$	3,056
Inventories		1,515		Cost of sales		(1,386	)		(129	)		—		(1,515	)
Property and equipment		(2,801	)	General and administrative		39			59			59		157
Deferred revenue		(372	)	Net sales		39			36			28		103

Total	$	(21,658	)	Total	$	(544	)	$	1,112		$	1,233	$	1,801