v2.4.0.6
Business Combination (Tables)
 6 Months Ended
Apr. 29, 2012
Business Combinations [Abstract]  
Summary of allocation of assets acquired and liabilities assumed
The following table summarizes the preliminary allocation of the assets acquired and liabilities assumed at the acquisition date:
Estimated Fair Values
Acquisition
2012
 
(In millions)
Cash and cash equivalents
$
632

Short-term investments
56

Accounts receivable, net
194

Inventories
250

Deferred income taxes and other current assets
66

Long-term investments
62

Property and equipment, net
104

Goodwill
2,604

Purchased intangible assets
1,365

Other assets
10

Total assets acquired
5,343

Accounts payable and accrued expenses
(134
)
Customer deposits and deferred revenue
(52
)
Income taxes payable
(60
)
Deferred income taxes
(211
)
Other liabilities
(25
)
Total liabilities assumed
(482
)
Purchase price allocated
$
4,861
Purchased Intangible Assets
The following table presents detail of the purchase price allocated to purchased intangible assets of Varian at the acquisition date:
 
Useful
Life
 
Purchased
Intangible  Assets
2012
 
(In years)
 
(In millions)
Developed technology
1-7
 
$
987

Customer relationships
15
 
150

In-process technology
 
 
142

Patents and trademarks
10
 
69

Backlog
1
 
7

Covenant not to compete
2
 
10

Total purchased intangible assets
 
 
$
1,365
Unaudited pro forma consolidated results of operations assumed in the acquisition
The pro forma consolidated results of operations for the three and six months ended May 1, 2011 combine the results of Applied for the three and six months ended May 1, 2011, with the results of Varian for the three and six months ended April 1, 2011.
 
Three Months Ended
 
Six Months Ended
 
April 29,
2012
 
May 1,
2011
 
April 29,
2012
 
May 1,
2011
 
(In millions, except per share amounts)
Net sales
$
2,541

 
$
3,192

 
$
4,730

 
$
6,161

Net income
$
308

 
$
508

 
$
503

 
$
957

Basic and diluted earnings per share
$
0.24

 
$
0.38

 
$
0.39

 
$
0.72