Dell 2007 Annual Report Download - page 86

Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
acquisitions, satisfied the growing number of consumers and businesses seeking the highest-performance PC products, including those
used for gaming and multimedia digital content management. Dell recorded approximately $110 million of goodwill and $50 million of
amortizable intangible assets in connection with these acquisitions.
Dell has included the results of operations of these transactions prospectively from the respective date of transaction. Supplemental pro
forma information is not provided, as the acquisitions did not have a material effect on Dell's results of operations, cash flows, or
financial position individually or in aggregate.
NOTE 8 — GOODWILL AND INTANGIBLE ASSETS
Goodwill
Dell records the excess of an acquisition's purchase price over the fair value of the identified assets and liabilities as goodwill. Changes in
the carrying amount of goodwill during Fiscal 2008 and Fiscal 2007 are as follows:
Fiscal Year Ended
February 1, February 2,
2008 2007
(in millions)
Balance at beginning of the year $ 110 $ -
Goodwill acquired during the period 1,538 110
Balance at end of the year $ 1,648 $ 110
Goodwill acquired during Fiscal 2008 has not yet been allocated to Dell's segments. Allocations will be completed as the preliminary
purchase price allocations are finalized. Based on the results of its annual impairment tests, Dell determined that no impairment of
goodwill existed as of February 1, 2008 or February 2, 2007. However, future goodwill impairment tests could result in a charge to
earnings. Dell will continue to evaluate goodwill on an annual basis during its second fiscal quarter and whenever events and changes in
circumstances indicate that there may be a potential impairment.
Intangible Assets
Dell's intangible assets associated with completed acquisitions for each of the following fiscal years at February 1, 2008 and February 2,
2007, are as follows:
Fiscal 2008:
Accumulated
As of February 1, 2008 Gross Amortization Net
(in millions)
Technology $ 491 $ (15) $ 476
Customer relationships 231 (9) 222
Tradenames 39 (6) 33
Covenants not-to-compete 23 (1) 22
Other 1 (1) -
Amortizable intangible assets $ 785 $ (32) $ 753
Indefinite lived intangible assets 27 - 27
Total intangible assets $ 812 $ (32) $ 780
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