In December 2013, FireEye, Inc. acquired all of the outstanding shares of privately held Mandiant Corporation, a provider of computer security products, for $106,538,000 in cash and 16,921,000 shares of FireEye common stock with a fair value of $704,414,000 and a par value of $0.0001/share. In addition, Mandiants existing vested stock option and restricted stock awards were converted to awards denominated in FireEye stock, in the amount of 6,680,000 shares with a fair value of $86,703,000. These awards have the same terms as when they were issued by Mandiant. FireEye estimates that unvested equity awards relating to post combination services have a current fair value of $122,600,000. Out-of-pocket acquisition-related costs were $8,500,000. The following table summarizes the date-of-acquisition fair values of the identifiable net assets acquired. Net tangible assets $9,629,000 Identifiable intangible assets: Developed technology 54,600,000 In-process research and development 1,400,000 Content intangibles 128,500,000 Customer relationships 66,000,000 Contract backlog 12,600,000 Trade names 12,400,000 Deferred tax liability (90,105,000) Identifiable net assets acquired $195,024,000 FireEye describes the identifiable intangible assets acquired as follows: Content intangibles represent threat intelligence, which is continually gathered from ongoing monitoring of endpoints and by incident response and remediation teams. The intangible assets attributable to customer relationships relate to Mandiants ability to sell existing, in-process and future versions of its products and services to its existing customers. Developed technology intangibles includes a combination of patented and unpatented technology, trade secrets, and computer software and process that represent the foundation for planned new products and services. FireEye plans to amortize the developed technology over 46 years, the content intangibles over 10 years, customer relationships over 8 years, contract backlog over 13 years, and trade names over 4 years. Inprocess research and development has an indefinite life.
Prepare the journal entry FireEye would make if it recorded the combination as a merger. Round all numbers to the nearest thousand.
- Enter answers in thousands.
- Round answers to the nearest thousand, if applicable (ex: $6,436 equals $6 in thousands - rounded).
Acquisition with Stock Options In December 2013. Prekye, Inc. acquired all of the outstanding shares of privately held Mardiant Corporation, a provider of computer security products for 106,538,000 in cash and 16,921,000 shares of FireEye common stock with a fair value of $704414,000 and a par value of 50.0001/share. In addition, Mandant's existing vested stock option and restricted stock awards were converted towards denominated in Firefye stock, in the amount of 6,680,000 shares with a fair value of 586,703,000. These awards have the same terms as when they were issued by Mandiant. FireEye estimates that invested equity awards relating to post combination services have a current fair value of 5122,600,000. Out of pocket acquisition related costs were 18,500,000. The following table summarizes the date of-acquisition fair values of the identifiable net assets acquired. Nettangoleas 59.6.20.000 Identifiable intang ble Developed tech 54.600.000 in process reach and elopment 1.400.000 Cortinang 12580.000 Customer 66.000.000 Contact hadde 2.000.000 Trdname Deferred 190.105.000 renuired $195.634.000 12.400.000 Firetye describes the identifiable intangible assets acquired as follows: Content intangles represent threat intelligence, which is continually gathered from anong moindring of endpoints and by incident response and remetion. The intancble assets attributable to customer relationships relate to Mandant's ability to sell existing in process and future versions of its products and services to its existing stomers Developed technology intangibles indudes a combination of sented and unpatented technology trade secrets, and computer software and process that represent the foundation for planned new products and services Partye plans to more the developed technology over 4-6 years the content ingles over 10 years, customers over las contract baco years and trade names or years. Inprocess research and development has an indefinite Fireliye describes the identifiable intangible assets acquired as follows: Content intangibles represent threat intelligence, which is continually gathered from ongoing monitoring of endpoints and by incident response and remediation teams. The Intangible assets attributable to customer relationships relate to Mandiants ability to sell existing process and future versions of its products and services to its existing customers. Developed technology intangibles includes a combination of patented and unpatented technology, trade secrets, and computer software and process that represer the foundation for planned new products and services Fireye plans to amortize the developed technology over 4-6 years, the content intangibles over 10 years, customer relationships over 8 years, contract backlog over 1-3 years, and trade names over years, Inprocess research and development has an indefinitelfe. Required Calculate the total acquisition cost reported by Prekye. Enter answer in thousands (ex: 88,500,000 equals $8.500 in thousands). 5897,655 On thousands How much goodwill was recognized for this acquisition? Enter answer in thousands (exc 58,500,000 equals $8.500 in thousands 5202631 in thousands) Prepare the journal entry FreEye would make if it recorded the combination as a merger Round all numbers to the nearest thousand - Enter answers in thousands Round answers to the nearest thousand, if applicable ex 56 436 quals 56 in thousands -rounded) Prepare the journal entry FireEye would make if it recorded the combination as a merger. Round all numbers to the nearest thousand. . Enter answers in thousands. Round answers to the nearest thousand, if applicable (ex: $6,436 equals s6 in thousands - rounded). Description Debit Credit Net tangible assets 9.629 0 Developed technology 54,600 0 in process research and development 1.400 0 Content intangibles 128,500 Customer relationships 66.000 Contract backlog 12,600 Trade names 12,400 Goodwill 702,631 Merger expenses . 8.500 Deferred tax liability 0 90.105 Common stock 0 791 117 X Pald-in capital OX Cash 0 115,038 0 0 O 0 0 O Check Acquisition with Stock Options In December 2013. Prekye, Inc. acquired all of the outstanding shares of privately held Mardiant Corporation, a provider of computer security products for 106,538,000 in cash and 16,921,000 shares of FireEye common stock with a fair value of $704414,000 and a par value of 50.0001/share. In addition, Mandant's existing vested stock option and restricted stock awards were converted towards denominated in Firefye stock, in the amount of 6,680,000 shares with a fair value of 586,703,000. These awards have the same terms as when they were issued by Mandiant. FireEye estimates that invested equity awards relating to post combination services have a current fair value of 5122,600,000. Out of pocket acquisition related costs were 18,500,000. The following table summarizes the date of-acquisition fair values of the identifiable net assets acquired. Nettangoleas 59.6.20.000 Identifiable intang ble Developed tech 54.600.000 in process reach and elopment 1.400.000 Cortinang 12580.000 Customer 66.000.000 Contact hadde 2.000.000 Trdname Deferred 190.105.000 renuired $195.634.000 12.400.000 Firetye describes the identifiable intangible assets acquired as follows: Content intangles represent threat intelligence, which is continually gathered from anong moindring of endpoints and by incident response and remetion. The intancble assets attributable to customer relationships relate to Mandant's ability to sell existing in process and future versions of its products and services to its existing stomers Developed technology intangibles indudes a combination of sented and unpatented technology trade secrets, and computer software and process that represent the foundation for planned new products and services Partye plans to more the developed technology over 4-6 years the content ingles over 10 years, customers over las contract baco years and trade names or years. Inprocess research and development has an indefinite Fireliye describes the identifiable intangible assets acquired as follows: Content intangibles represent threat intelligence, which is continually gathered from ongoing monitoring of endpoints and by incident response and remediation teams. The Intangible assets attributable to customer relationships relate to Mandiants ability to sell existing process and future versions of its products and services to its existing customers. Developed technology intangibles includes a combination of patented and unpatented technology, trade secrets, and computer software and process that represer the foundation for planned new products and services Fireye plans to amortize the developed technology over 4-6 years, the content intangibles over 10 years, customer relationships over 8 years, contract backlog over 1-3 years, and trade names over years, Inprocess research and development has an indefinitelfe. Required Calculate the total acquisition cost reported by Prekye. Enter answer in thousands (ex: 88,500,000 equals $8.500 in thousands). 5897,655 On thousands How much goodwill was recognized for this acquisition? Enter answer in thousands (exc 58,500,000 equals $8.500 in thousands 5202631 in thousands) Prepare the journal entry FreEye would make if it recorded the combination as a merger Round all numbers to the nearest thousand - Enter answers in thousands Round answers to the nearest thousand, if applicable ex 56 436 quals 56 in thousands -rounded) Prepare the journal entry FireEye would make if it recorded the combination as a merger. Round all numbers to the nearest thousand. . Enter answers in thousands. Round answers to the nearest thousand, if applicable (ex: $6,436 equals s6 in thousands - rounded). Description Debit Credit Net tangible assets 9.629 0 Developed technology 54,600 0 in process research and development 1.400 0 Content intangibles 128,500 Customer relationships 66.000 Contract backlog 12,600 Trade names 12,400 Goodwill 702,631 Merger expenses . 8.500 Deferred tax liability 0 90.105 Common stock 0 791 117 X Pald-in capital OX Cash 0 115,038 0 0 O 0 0 O Check
