Acquisitions and Divestitures

12 Months Ended

Jul. 31, 2021

Business Combination and Asset Acquisition [Abstract]

(a)Acquisition Summary

We completed 13 acquisitions during fiscal 2021. A summary of the allocation of the total purchase consideration is presented as follows (in millions):


Fiscal 2021	Purchase Consideration		Net Tangible Assets Acquired (Liabilities Assumed)		Purchased Intangible Assets		Goodwill
Acacia	$	4,983	$	442	$	2,160	$	2,381
Others	2,472		(130)		754		1,848
Total	$	7,455	$	312	$	2,914	$	4,229

On March 1, 2021, we completed our acquisition of Acacia Communications, Inc. (“Acacia”), a public fabless semiconductor company that develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost. Revenue from the Acacia acquisition has been included in our Infrastructure Platforms product category.

The total purchase consideration related to our acquisitions completed during fiscal 2021 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $338 million.

Fiscal 2020 Acquisitions

Allocation of the purchase consideration for acquisitions completed in fiscal 2020 is summarized as follows (in millions):


Fiscal 2020	Purchase Consideration		Net Tangible Assets Acquired (Liabilities Assumed)		Purchased Intangible Assets		Goodwill
Total acquisitions (six in total)	$	359	$	(11)	$	172	$	198

The total purchase consideration related to our acquisitions completed during fiscal 2020 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $23 million.

Fiscal 2019 Acquisitions

In fiscal 2019, we completed five acquisitions for total purchase consideration of $2.7 billion.

(b) Other Acquisition and Divestiture Information

Total transaction costs related to our acquisition and divestiture activities during fiscal 2021, 2020, and 2019 were $46 million, $21 million, and $21 million, respectively. These transaction costs were expensed as incurred in G&A expenses in the Consolidated Statements of Operations.

The goodwill generated from our acquisitions completed during fiscal 2021 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.

The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma results of operations and the revenue and net income subsequent to the acquisition date for the acquisitions completed during fiscal 2021, 2020, and 2019 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to our financial results.