Business Combinations Acquisition of Y.G. Noobaa Ltd. On November 27, 2018, the Company completed the acquisition of all of the shares of Y.G. Noobaa Ltd. (Noobaa). The addition of Noobaa, an early stage company developing software for managing data storage services, complements and enhances the Companys portfolio of hybrid cloud technologies, including Red Hat OpenShift Container Platform, Red Hat OpenShift Container Storage and Red Hat Ceph Storage. The consideration paid was $11.8 million in cash. Based on managements provisional assessment of the acquisition-date fair value of the assets acquired and liabilities assumed, the total consideration transferred of $11.8 million was allocated to the Companys assets and liabilities on a preliminary basis as follows: $3.5 million to goodwill, $9.3 million to identifiable intangible assets and $1.0 million to working capital as a net current liability. Acquisition of CoreOS, Inc. On January 30, 2018, the Company completed the acquisition of all of the shares of CoreOS, Inc. (CoreOS). The addition of CoreOS, a provider of Kubernetes and container-native solutions, is expected to further enable the Companys customers to build and deploy any application in any environment with the flexibility afforded by open source. By combining CoreOSs complementary capabilities with the Companys Kubernetes and container-based portfolio, including Red Hat OpenShift, the Company aims to further accelerate adoption and development of its hybrid cloud platform for modern application workloads. During the third quarter of fiscal 2019, the Company completed its assessment of the acquisition-date fair value of the assets acquired and liabilities assumed. The total consideration transferred of $238.7 million was allocated to the Companys assets and liabilities as follows: $159.7 million to goodwill, $81.7 million to identifiable intangible assets and $2.7 million to working capital as a net current liability. Acquisition of Permabit Technology Corporation On July 31, 2017, the Company acquired the assets and technology of Permabit Technology Corporation (Permabit), a provider of software for data deduplication, compression and thin provisioning technology. Adding Permabits data deduplication and compression capabilities to the Companys Red Hat Enterprise Linux platform will better enable enterprise digital transformation through more efficient storage options. During the three months ended February 28, 2018, the Company completed its assessment of the acquisition-date fair value of the assets acquired and liabilities assumed. The total consideration transferred of $49.8 million was allocated to the Companys assets and liabilities as follows: $39.4 million to goodwill, $10.4 million to identifiable intangible assets and a nominal amount to working capital. The goodwill acquired is expected to be deductible for tax purposes. Acquisition of Codenvy S. A. On June 1, 2017, the Company completed its acquisition of all of the shares of Codenvy S.A. (Codenvy), a provider of cloud-native development tools that enable developers to more easily create modern container-based and cloud-native applications. By adding Codenvy to its existing portfolio of developer tools and application platforms, including Red Hat Middleware and Red Hat OpenShift, the Company continues its efforts to provide solutions that enable developers to create applications for hybrid cloud environments. The Company plans to make Codenvy an integral part of OpenShift.io, the Companys hosted development environment for building hybrid cloud services on OpenShift. During the three months ended November 30, 2017, the Company completed its assessment of the acquisition-date fair value of the assets acquired and liabilities assumed. The total consideration transferred of $34.2 million was allocated to the Companys assets and liabilities as follows: $25.4 million to goodwill, $11.3 million to identifiable intangible assets and $2.5 million to working capital as a net current liability. Acquisition of 3scale, Inc. On June 24, 2016, the Company completed its acquisition of all of the shares of 3scale, Inc. (3scale), a provider of application programming interface (API) management technology. By adding 3scale to its existing portfolio, including Red Hat Middleware and Red Hat OpenShift, the Company strengthened its enablement of the API economy with simplified cloud integration and microservices-based architectures. The consideration paid was $29.1 million in cash. Management has completed its assessment of the acquisition-date fair value of the assets acquired and liabilities assumed. The total consideration transferred of $29.1 million was allocated to the Companys assets and liabilities as follows: $16.9 million to goodwill, $13.1 million to identifiable intangible assets and $0.9 million to working capital as a net current liability. Transaction costs The Company incurred transaction costs, including legal and accounting fees, relating to these acquisitions, which have been expensed as incurred and included in General and administrative expense in the Companys Consolidated Statements of Operations. For the fiscal year ended February 28, 2019, transaction costs relating to the Noobaa acquisition totaled approximately $0.2 million ; for the fiscal year ended February 28, 2018, transaction costs relating to the CoreOS, Permabit and Codenvy acquisitions totaled approximately $2.0 million ; and for the fiscal year ended February 28, 2017, transaction costs relating to the 3scale acquisition totaled approximately $1.8 million . Pro forma consolidated financial information (unaudited) The following unaudited pro forma consolidated financial information reflects the results of operations of the Company (in thousands, except per share amounts) as if the acquisition of Noobaa had closed on March 1, 2017 and as if the acquisitions of CoreOS, Permabit, Codenvy and 3scale had closed on March 1, 2016, after giving effect to certain purchase accounting adjustments. These pro forma results are not necessarily indicative of what the Companys operating results would have been had the acquisitions actually taken place at the beginning of the period. Pro forma consolidated information for the fiscal year ended February 28, 2019 has not been provided because the acquisition of Noobaa would not have had a significant impact on consolidated operating results if the acquisition had closed on March 1, 2018. Fiscal Years Ended February 28, 2018 February 28, 2017 Revenue $ 2,930,248 $ 2,419,418 Net income $ 231,287 $ 228,369 Basic net income per common share $ 1.31 $ 1.27 Diluted net income per common share $ 1.25 $ 1.25 Goodwill and other business combinations The Company completed its annual goodwill impairment tests for the fiscal years ended February 28, 2019 , February 28, 2018 and February 28, 2017 . No goodwill impairment was deemed to have occurred for any of the fiscal years. The following is a summary of goodwill (in thousands): February 28, 2019 February 28, 2018 February 28, 2017 Balance at beginning of year $ 1,288,830 $ 1,040,709 $ 1,027,277 Acquisitions 3,500 228,451 16,923 Impact of foreign currency fluctuations (11,961 ) 20,080 (3,636 ) Purchase price adjustments on acquisitions (3,516 ) (410 ) 145 Balance at end of year $ 1,276,853 $ 1,288,830 $ 1,040,709 The excess of purchase price paid for Noobaa, CoreOS, Permabit, Codenvy and other acquisitions over the fair value of the net assets acquired was recognized as goodwill. Goodwill comprises the majority of the purchase price paid for each of the acquired businesses because these businesses were focused on emerging technologies such as development and operations automation, cloud-enabling technologies and software-defined storage technologies, which consequentlyat the time of acquisitiongenerated relatively little revenue. However, these acquired businesses, with their assembled, highly-specialized workforces and community of contributors, are expected to both expand the Companys existing technology portfolio and advance the Companys market position overall in open source solutions.