ACQUISITIONS (Tables)

62 Months Ended

Dec. 31, 2012

Allocation of Purchase Price

The following represents the allocation of the purchase price:

	Purchase Price Allocation
	(in thousands)
Goodwill	$	349,272
Intangible assets		310,500
Tangible assets acquired and liabilities assumed:
Cash, cash equivalents and short term marketable securities		61,250
Other current assets		75,615
Non-current assets		5,838
Accounts payable and current liabilities		(37,177	)
Long-term deferred tax liabilities		(115,463	)
Other long-term liabilities		(3,788	)
Total purchase price	$	646,047

Components of Other Intangible Assets and Their Estimated Useful Lives At Acquisition Date

The following table represents components of these intangible assets and their estimated useful lives at the acquisition date:

	Fair Value		Estimated Useful Life
	(in thousands)		(in years)
Developed technology	$	237,100		6.4
Customer relationships		53,700		7.0
Tradenames		19,000		7.0
Customer backlog		700		0.3
Total intangible assets	$	310,500		6.5

Pro Forma Results Under Acquisitions

The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented:

	For the Year Ended
	December 31, 2011		December 31, 2010
	(in thousands, except per share amounts)
Revenue	$	1,527,044	$	1,652,153
Income from continuing operations	$	357,060	$	309,549
Net income	$	382,976	$	314,972
Income from continuing operations per common share:
Basic	$	1.93	$	1.72
Diluted	$	1.56	$	1.42
Net income per common share:
Basic	$	2.07	$	1.75
Diluted	$	1.67	$	1.44

Stock Option

Fair Value of Stock Options Using Assumptions

The fair value of the stock options at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions:

	2012			2011			2010
Expected life (years)		3.50			4.00			4.75
Interest rate		0.4	%		1.5	%		2.4	%
Volatility-historical		56.0	%		52.1	%		48.8	%
Dividend yield		0.0	%		0.0	%		0.0	%

Stock Purchase Rights

Fair Value of Stock Options Using Assumptions

The fair value of the employees’ purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions:

	2012			2011			2010
Expected life (years)		0.5			0.5			0.5
Interest rate		0.1	%		0.1	%		0.2	%
Volatility-historical		42.7	%		41.0	%		48.0	%
Dividend yield		0.0	%		0.0	%		0.0	%

Litepoint Corporation

Fair Value of Stock Options Using Assumptions

The fair value of stock options was estimated using the following weighted average assumptions:

Expected life (years)	6.2
Expected volatility	49.1	%
Risk-free interest rate	1.3	%
Dividend yield	0.0	%