Dell 2008 Annual Report Download - page 87
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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 8 —GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill allocated to Dell's business segments as of January 30, 2009, and February 1, 2008, and changes in the carrying amount of goodwill for the
fiscal year ended January 30, 2009, were as follows:
Americas EMEA APJ Global
Commercial Commercial Commercial Consumer Total
(in millions)
Balance at February 1, 2008 $ 822 $ 412 $ 127 $ 287 $ 1,648
Goodwill acquired 78 37 21 - 136
Adjustments to goodwill (31) (14) (10) 8 (47)
Balance at January 30, 2009 $ 869 $ 435 $ 138 $ 295 $ 1,737
January 30, February 1,
2009 2008
(in millions)
Balance at beginning of the year $ 1,648 $ 110
Goodwill acquired during the year 136 1,538
Adjustments to goodwill (47) -
Balance at end of the year $ 1,737 $ 1,648
Goodwill is tested annually during the second fiscal quarter and whenever events or circumstances indicate an impairment may have occurred. If the
carrying amount of goodwill exceeds its fair value, estimated based on discounted cash flow analyses, an impairment charge would be recorded.
Based on the results of its annual impairment tests, Dell determined that no impairment of goodwill existed at August 1, 2008, and for the fiscal
years ended January 30, 2009, and February 1, 2008. The goodwill adjustments are primarily the result of purchase price allocation adjustments
related to the finalization of deferred tax calculations and the effects of foreign currency adjustments where the purchase price was recorded in
entities where the local currency is the functional currency. In the fourth quarter of Fiscal 2009, Dell updated its annual analysis of potential
triggering events for goodwill and indefinite lived intangible asset impairments. Based on this analysis, Dell concluded that there was no evidence
that would indicate an impairment of goodwill or indefinite lived intangible assets.
Intangible Assets
Dell's intangible assets associated with completed acquisitions at January 30, 2009, and February 1, 2008, are as follows:
January 30, 2009 February 1, 2008
Accumulated Accumulated
Gross Amortization Net Gross Amortization Net
(in millions)
Technology $ 524 $ (82) $ 442 $ 492 $ (16) $ 476
Customer relationships 243 (38) 205 231 (9) 222
Tradenames 41 (9) 32 39 (6) 33
Covenants not-to-compete 26 (6) 20 23 (1) 22
Amortizable intangible assets $ 834 $ (135) $ 699 $ 785 $ (32) $ 753
Indefinite lived intangible assets 25 - 25 27 - 27
Total intangible assets $ 859 $ (135) $ 724 $ 812 $ (32) $ 780
83