Note 3.  Business Combinations Purchase Combinations.
During the fiscal years presented, the Company made a number of purchase acquisitions.
For each acquisition, the excess of the purchase price over the estimated value of the net tangible assets acquired was allocated to various intangible assets, consisting primarily of developed technology, customer and contract-related assets and goodwill.
The values assigned to developed technologies related to each acquisition were based upon future discounted cash flows related to the existing products’ projected income streams.
Goodwill, representing the excess of the purchase consideration over the fair value of tangible and identifiable intangible assets acquired in the acquisitions, will not to be amortized.
Goodwill is not deductible for tax purposes.
The amounts allocated to purchased in-process research and developments were determined through established valuation techniques in the high-technology industry and were expensed upon acquisition because technological feasibility had not been established and no future alternative uses existed.
The consolidated financial statements include the operating results of each business from the date of acquisition.
The Company does not consider these acquisitions to be material to its results of operations and is therefore not presenting pro forma statements of operations for the fiscal years ended October 31, 2006, 2005 and 2004.
Fiscal 2006 Acquisitions SIGMA-C Software AG (Sigma-C) The Company acquired Sigma-C on August 16, 2006 in an all-cash transaction.
Reasons for the Acquisition.
Sigma-C provides simulation software that allows semiconductor manufacturers and their suppliers to develop and optimize process sequences for optical lithography, e-beam lithography and next-generation lithography technologies.
The Company believes the acquisition will enable a tighter integration between design and manufacturing tools, allowing the Company’s customers to perform more accurate design layout analysis with 3D lithography simulation and better understand issues that affect IC wafer yields.
Purchase Price.
The Company paid $20.5 million in cash for the outstanding shares and shareholder notes of which $2.05 million was deposited with an escrow agent and will be paid per the escrow agreement.
The Company believes that the escrow amount will be paid.
The total purchase consideration consisted of:
## Table 0 ##
Acquisition-related costs of $2.1 million consist primarily of legal, tax and accounting fees, estimated facilities closure costs and employee termination costs.
As of October 31, 2006, the Company had paid $0.9 million of the acquisition-related costs.
The $1.2 million balance remaining at October 31, 2006 primarily consists of legal, tax and accounting fees, estimated facilities closure costs and employee termination costs.
Assets Acquired.
The Company performed a preliminary valuation and allocated the total purchase consideration to assets and liabilities.
The Company acquired $6.0 million of intangible assets consisting of $3.9 million in existing technology, $1.9 million in customer relationships and $0.2 million in trade names to be amortized over five years.
The Company also acquired assets of $3.9 million and assumed liabilities of $5.1 million as result of this transaction.
Goodwill, representing the excess of the purchase price over the
fair value of the tangible assets and identifiable intangible assets acquired, was $17.7 million.
Goodwill resulted primarily from the Company’s expectation of synergies from the integration of Sigma-C’s technology with the Company’s technology and operations.
Virtio Corporation, Inc.  (Virtio) The Company acquired Virtio on May 15, 2006 in an all-cash transaction.
Reasons for the Acquisition.
The Company believes that its acquisition of Virtio will expand its presence in electronic system level design.
The Company expects the combination of the Company’s System Studio solution with Virtio’s virtual prototyping technology will help accelerate systems to market by giving software developers the ability to begin code development earlier than with prevailing methods.
Purchase Price.
The Company paid $9.1 million in cash for the outstanding shares of Virtio, of which $0.9 million was deposited with an escrow agent and which will be paid to the former stockholders of Virtio pursuant to the terms of an escrow agreement.
In addition, the Company had a prior investment in Virtio of approximately $1.7 million.
The total purchase consideration consisted of:
## Table 1 ##
Acquisition-related costs of $0.7 million consist primarily of legal, tax and accounting fees, estimated facilities closure costs and employee termination costs.
As of October 31, 2006, the Company had paid $0.3 million of the acquisition-related costs.
The $0.4 million balance remaining at October 31, 2006 primarily consists of professional and tax-related service fees and facilities closure costs.
Under the agreement with Virtio, the Company has also agreed to pay up to $4.3 million over three years to the former stockholders based upon achievement of certain sales milestones.
This contingent consideration is considered to be additional purchase price and will be an adjustment to goodwill when and if payment is made.
Additionally, the Company has also agreed to pay $0.9 million in employee retention bonuses which will be recognized as compensation expense over the service period of the applicable employees.
Assets Acquired.
The Company has performed a preliminary valuation and allocated the total purchase consideration to the assets and liabilities acquired, including identifiable intangible assets based on their respective fair values on the acquisition date.
The Company acquired $2.5 million of intangible assets consisting of $1.9 million in existing technology, $0.4 million in customer relationships and $0.2 million in non-compete agreements to be amortized over five to seven years.
Additionally, the Company acquired tangible assets of $5.5 million and assumed liabilities of $3.2 million.
Goodwill, representing the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in the merger, was $6.7 million.
Goodwill resulted primarily from the Company’s expectation of synergies from the integration of Virtio’s technology with the Company’s technology and operations.
HPL Technologies, Inc.  (HPL) The Company acquired HPL on December 7, 2005 in an all-cash transaction.
Reasons for the Acquisition.
The Company believes that the acquisition of HPL will help solidify the Company’s position as a leading electronic design automation vendor in design for manufacturing (DFM)
## Table 2 ##
(1) We have a fiscal year that ends on the Saturday nearest October 31.
Fiscal 2011, 2010, 2009, and 2008 were 52-week years.
Fiscal 2007 was a 53-week fiscal year.
(2) Includes results of operations from business combinations from the date of acquisition for which information is included herein.
See Note 3 of Notes to Consolidated Financial Statements.
(3) Includes $12.5 million litigation settlement received from Magma Design Automation, Inc.  during fiscal 2007.
(4) Includes $32.8 million, $94.3 million and $17.3 million tax benefit from an IRS settlement received in fiscal 2011, fiscal 2010 and fiscal 2008, respectively.
See Note 10 of Notes to Consolidated Financial Statements.
(5) Includes an adjustment to the beginning balance of fiscal 2007 retained earnings as a result of the adoption of Staff Accounting Bulletin No.108 (SAB 108) and an adjustment to the beginning balance of fiscal 2008 retained earnings as a result of the accounting guidance for uncertainty in income taxes.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview The following summary of our financial condition and results of operations is qualified in its entirety by the more complete discussion contained in this Item 7 and by the risk factors set forth in Item 1A of this Annual Report.
Please also see the cautionary language at the beginning of Part 1 of this Annual Report regarding forward-looking statements.
Business Summary Synopsys is a world leader in providing technology solutions used to develop electronics and electronic systems.
We supply the electronic design automation (EDA) software that engineers use to design, create prototypes for and test integrated circuits, also known as chips.
We also supply software and hardware used to develop the systems that incorporate integrated circuits and the software that runs on those integrated circuits.
Our intellectual property (IP) products are pre-designed circuits that engineers use as components of larger chip designs rather than redesigning those circuits themselves.
To complement these product offerings, we provide technical services to support our solutions and we help our customers develop chips and electronic systems.
Our customers are generally large semiconductor and electronics manufacturers.
Our solutions help them overcome the challenge of developing increasingly advanced electronics products while
SYNOPSYS, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—Continued securities are carried at cost.
The Company performs periodic impairment analysis over these non-marketable equity securities.
See Note 6.
Cash Equivalents and Short-Term Investments.
The Company classifies investments with original maturities of three months or less when acquired as cash equivalents.
All of the Company’s short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in stockholders’ equity as a component of accumulated other comprehensive income (loss), net of tax.
Those unrealized gains or losses deemed other than temporary are reflected in other income (expense), net.
The cost of securities sold is based on the specific identification method and realized gains and losses are included in other income (expense), net.
See Note 5.
Concentration of Credit Risk.
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign currency contracts, and accounts receivable from trade customers.
The Company maintains cash equivalents primarily in highly rated taxable and tax-exempt money market funds located in the U. S.  and in various overseas locations.
Marketable securities consist of highly liquid investment grade municipal bonds which, by policy, are subject to duration and credit concentration limits.
In addition, the Company minimizes its market risk for changes in interest rates by maintaining the portfolio of cash equivalents and investments in a mix of tax-exempt and taxable instruments that meet high credit quality standards.
The Company’s foreign currency contracts are diversified among investment grade, global financial institutions.
See Note 5.
The Company sells its products worldwide primarily to customers in the global electronics market.
The Company performs on-going credit evaluations of its customers’ financial condition and does not require collateral.
The Company establishes reserves for potential credit losses and such losses have been within management’s expectations and have not been material in any year presented.
Allowance for Doubtful Accounts.
Trade accounts receivable are recorded at the invoiced amount and do not bear interest.
The Company maintains allowances for doubtful accounts to reduce the Company’s receivables to their estimated net realizable value.
The Company provides a general reserve on all accounts receivable based on a review of accounts and a 15-quarter average of writeoffs, net of recoveries.
The following table presents the changes in the allowance for doubtful accounts.

<table><tr><td></td><td>(in thousands)</td></tr><tr><td>Cash paid</td><td>$20,500</td></tr><tr><td>Acquisition-related costs</td><td>2,053</td></tr><tr><td>Total purchase price</td><td>$22,553</td></tr></table>
<table><tr><td></td><td>(in thousands)</td></tr><tr><td>Cash paid</td><td>$9,076</td></tr><tr><td>Prior investment in Virtio</td><td>1,664</td></tr><tr><td>Acquisition-related costs</td><td>713</td></tr><tr><td>Total purchase price</td><td>$11,453</td></tr></table>
<table><tr><td></td><td colspan="5"> Fiscal Year Ended October 31,-1(2)</td></tr><tr><td></td><td> 2011</td><td> 2010</td><td> 2009</td><td> 2008</td><td> 2007</td></tr><tr><td></td><td colspan="5"> (in thousands, except per share data)</td></tr><tr><td>Revenue</td><td>$1,535,643</td><td>$1,380,661</td><td>$1,360,045</td><td>$1,336,951</td><td>$1,212,469</td></tr><tr><td>Income before provisions for income taxes-3</td><td>219,113</td><td>198,658</td><td>233,070</td><td>218,956</td><td>165,799</td></tr><tr><td>(Benefit) provision for income taxes(4)</td><td>-2,251</td><td>-38,405</td><td>65,389</td><td>28,978</td><td>35,308</td></tr><tr><td>Net income</td><td>221,364</td><td>237,063</td><td>167,681</td><td>189,978</td><td>130,491</td></tr><tr><td>Net income per share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>1.51</td><td>1.60</td><td>1.17</td><td>1.33</td><td>0.91</td></tr><tr><td>Diluted</td><td>1.47</td><td>1.56</td><td>1.15</td><td>1.29</td><td>0.87</td></tr><tr><td>Working capital</td><td>329,245</td><td>325,987</td><td>649,207</td><td>413,307</td><td>296,463</td></tr><tr><td>Total assets</td><td>3,367,334</td><td>3,286,541</td><td>2,938,854</td><td>2,742,478</td><td>2,617,337</td></tr><tr><td>Stockholders’ equity-5</td><td>2,101,300</td><td>2,100,182</td><td>1,844,166</td><td>1,528,371</td><td>1,436,393</td></tr></table>

Question: what is the percentage of existing technology among the total intangible assets?
Answer: 0.65