This excerpt taken from the HPQ 10-K filed Dec 17, 2009.
Acquisitions in fiscal 2009
In fiscal 2009, HP completed two acquisitions. Total consideration for the acquisitions was $390 million, which includes direct transaction costs and the assumption of certain liabilities in connection with the transactions. HP recorded $315 million of goodwill, $105 million of purchased intangibles and $7 million of in-process research and development charges ("IPR&D") related to these transactions. Projects that qualify for treatment as IPR&D have not yet reached technical feasibility
Notes to Consolidated Financial Statements (Continued)
Note 6: Acquisitions (Continued)
and have no alternative use. HP does not expect goodwill recorded with these acquisitions to be deductible for tax purposes. HP has not presented pro forma results of operations because the acquisitions are not material to HP's consolidated financial statements.
The largest of the two acquisitions is the acquisition of Lefthand Networks, Inc., a leading provider of storage virtualization and solutions, which has been integrated into HP's Enterprise Storage and Servers segment. The total purchase price paid was $347 million in cash including direct transaction costs and the assumption of certain liabilities in connection with the transaction. HP recorded $273 million to goodwill, $95 million to purchased intangibles and $6 million to IPR&D charges related to this acquisition. HP is amortizing the purchased intangibles on a straight-line basis over a weighted-average estimated life of 6.3 years.