Expected expense of outstanding equity incentive awards in first four years

[Table of Contents](#if58bf2b7da5f49b78db442640b215d13_7)Pursuant to the equity purchase agreement we also issued approximately 583,000 restricted stock units (RSUs) in substitution of outstanding equity incentive awards. These RSUs have a grant date fair value of $355 million and will be expensed over three years. Additionally, we issued approximately 325,000 RSUs with a total grant date fair value of $211 million to Mailchimp employees, of which $151 million will be expensed over four years and $60 million was expensed during the first six months following the acquisition date.The preliminary allocation of the Mailchimp purchase price is as follows:

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| (In millions) | Amount |
| Cash and cash equivalents | $ | 42  |  |
| Investments | 126  |  |
| Accounts receivable, net | 25  |  |
| Income taxes receivable | 1  |  |
| Prepaid expenses and other current assets | 24  |  |
| Long-term investments | 1  |  |
| Property and equipment, net | 15  |  |
| Operating lease right-of-use assets | 31  |  |
| Goodwill | 8,094  |  |
| Intangible assets | 4,340  |  |
| Long-term deferred income tax assets | 6  |  |
| Other assets | 1  |  |
| Accounts payable | (163) |  |
| Accrued compensation and related liabilities | (409) |  |
| Deferred revenue | (57) |  |
| Other current liabilities | (56) |  |
| Long-term portion of operating lease liabilities | (20) |  |
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| Other long-term obligations | (5) |  |
| Total preliminary purchase price allocation | $ | 11,996  |  |

The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributed to the assembled workforce of Mailchimp and the synergies expected to be achieved. This goodwill is assigned to the Small Business & Self-Employed segment and substantially all is deductible for income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed are preliminary based on management's estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. We expect to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.Intangible assets consist of customer lists, purchased technology, and trade names/trademarks. We amortize purchased intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is 12 years. The following table presents the details of identifiable intangible assets acquired.

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| (In millions, except years) | Estimated Useful Life |  | Amount |
| Customer lists | 13 years |  | $ | 3,160  |  |
| Purchased technology | 9 years |  | 900  |  |
| Trade names/trademarks | 10 years |  | 280  |  |
| Total identifiable intangible assets |  |  | $ | 4,340  |  |



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| 6. Current Liabilities |



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| Short-Term Debt |

On November 1, 2021 we terminated our amended and restated credit agreement dated May 2, 2019 (2019 Credit Facility) and entered into a credit agreement with certain institutional lenders with an aggregate principal amount of $5.7 billion, which 

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|  |  Intuit Q3 Fiscal 2022 Form 10-Q | 19 |  |


