ACQUISITIONS On February 14, 2014, the Company completed its acquisition of Digitalsmiths Corporation, pursuant to an Agreement and Plan of Merger (the  Merger Agreement ) dated January 29, 2014 for $133.3 million in cash. Digitalsmiths Corporation was a privately-held cloud-based content discovery and recommendation service company headquartered in Durham, North Carolina. The acquisition of Digitalsmiths accelerates TiVo's evolution to a device and user interface cloud-based Software-as-a-Service company. Digitalsmiths' results of operations and the estimated fair value of assets acquired and liabilities assumed were included in the Company's unaudited consolidated financial statements beginning February 14, 2014. A total of $756,000 of acquisition costs were expensed as incurred of which $709,000 were expensed in fiscal year 2014 and the remainder during the six months ended July 31, 2014. During the three months ended July 31, 2014, we accrued an incremental $139,000 related to commission liabilities. This incremental accrual increased our accrued liabilities and our goodwill as of July 31, 2014. The purchase consideration was preliminarily allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. TiVo will continue to evaluate certain current liabilities and tax estimates that are subject to change within the measurement period (up to one year from the acquisition date). The Company's preliminary allocation of the total purchase price is as follows: Digitalsmiths Purchase Accounting - Opening Balance Sheet (in thousands) Assets: Cash $ 4,882 Accounts receivable 3,243 Other current assets 3,201 Deferred tax assets, current 3,831 Fixed assets 143 Total Assets $ 15,300 Liabilities: Accounts payable $ (1,266 ) Other current liabilities (8,572 ) Deferred revenue (970 ) Deferred tax liability, long term (9,985 ) Other long-term liabilities (1,012 ) Total Liabilities $ (21,805 ) Intangibles 52,700 Goodwill 87,074 T