Dell 2007 Annual Report Download - page 84

Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
deductible for tax purposes. The amortizable intangible assets are being amortized over their estimated useful lives based upon their
expected future cash flows, as follows:
Weighted-Average
Useful Life
(in millions) (years)
Technology $ 424 6.0
Customer relationships 46 7.6
Covenants not-to-compete 16 4.2
Total amortizable intangible assets $ 486 6.1
ASAP Software Acquisition
On November 9, 2007, Dell completed its acquisition of ASAP Software Express, Inc., ("ASAP"), a provider of software solutions and
licensing services for approximately $353 million in cash. This acquisition will help Dell to simplify information technology by
combining Dell's reach as a leading supplier of commercial technology and services and ASAPs expertise in software licensing and
license management. In connection with the acquisition, Dell recorded approximately $130 million of goodwill and $171 million of
amortizable intangible assets. Dell did not record any IPR&D in connection with the ASAP acquisition.
Based on valuations prepared using estimates and assumptions prepared by management, the purchase price allocation as of the date of
acquisition are as follows:
(in millions)
Cash, cash equivalents and short-term investments $ 2
Other tangible assets 175
Liabilities (125)
Total net assets acquired 52
Amortizable intangible assets 171
Goodwill 130
Total purchase price $ 353
Dell has included ASAP in its software and peripherals line of business for product revenue reporting purposes. Goodwill, which
represents the excess of the purchase price over the net tangible and intangible assets acquired, is expected to be deductible for tax
purposes. The amortizable intangible assets are being amortized over their estimated useful lives based upon their projected cash flows as
follows:
Weighted-Average
Useful Life
(in millions) (years)
Technology $ 18 4.9
Customer relationships 144 10.8
Tradenames 8 5.3
Covenants not-to-compete 1 1.1
Total amortizable intangible assets $ 171 9.9
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