Dell 2010 Annual Report Download - page 88

Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
solutions tailored to the requirements of mid-sized businesses. KACE is being integrated primarily into Dell's Small and Medium
Business and Public segments. Ocarina is a provider of de-duplication solutions and content-aware compression across storage product
lines. Scalent is a provider of scalable and efficient data center infrastructure software. Boomi is a provider of on-demand integration
technology. Ocarina, Scalent, and Boomi will be integrated into all of Dell's Commercial segments. InSite provides cloud-based medical
data archiving, storage, and disaster-recovery solutions to the health care industry. InSite will be integrated into Dell's Public segment.
Dell has recorded these acquisitions using the acquisition method of accounting and recorded their respective assets and liabilities at fair
value at the date of acquisition. The excess of the purchase prices over the estimated fair values were recorded as goodwill. Any changes
in the estimated fair values of the net assets recorded for these acquisitions prior to the finalization of more detailed analyses, but not to
exceed one year from the date of acquisition, will change the amount of the purchase prices allocable to goodwill. Any subsequent
changes to the purchase price allocations that are material to Dell's consolidated financial results will be adjusted retroactively. Dell
recorded approximately $284 million in goodwill and $141 million in intangible assets related to these acquisitions. The goodwill related
to these acquisitions is not deductible for tax purposes. In conjunction with these acquisitions, Dell will incur $56 million in
compensation-related expenses that will be expensed over a period of one to three years. There was no contingent consideration related to
these acquisitions.
Dell has not presented pro forma results of operations for the Fiscal 2011 acquisitions because these acquisitions are not material to Dell's
consolidated results of operations, financial position, or cash flows on either an individual or an aggregate basis.
Fiscal 2010 Acquisitions
On November 3, 2009, Dell completed its acquisition of all the outstanding shares of the Class A common stock of Perot Systems, a
worldwide provider of information technology and business solutions, for $3.9 billion in cash. This acquisition is expected to provide
customers a broader range of IT services and solutions and better position Dell for its own immediate and long-term growth and
efficiency. Perot Systems was primarily integrated into the Large Enterprise and Public segments for reporting purposes. Perot Systems'
results of operations were included in Dell's results beginning November 3, 2009.
The following table summarizes the consideration paid for Perot Systems and the amounts of assets acquired and liabilities assumed
recognized at the acquisition date:
Total
(in millions)
Cash and cash equivalents $ 266
Accounts receivable, net 410
Other assets 58
Property, plant, and equipment 323
Identifiable intangible assets 1,174
Deferred tax liability, net(a) (424)
Other liabilities (256)
Total identifiable net assets 1,551
Goodwill 2,327
Total purchase price $ 3,878
(a) The deferred tax liability, net primarily relates to purchased identifiable intangible assets and property, plant, and equipment and is shown net of associated deferred
tax assets.
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