Dell 2010 Annual Report Download - page 91

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
discounted cash flow analyses, an impairment charge would be recorded. Based on the results of the annual impairment tests, no
impairment of goodwill existed at July 30, 2010. Further, no triggering events have transpired since July 30, 2010, that would indicate a
potential impairment of goodwill as of January 28, 2011. Dell does not have any accumulated goodwill impairment charges as of
January 28, 2011. The goodwill adjustments are primarily the result of contingent purchase price considerations related to prior period
acquisitions and the effects of foreign currency fluctuations.
Intangible Assets
Dell's intangible assets associated with completed acquisitions at January 28, 2011 and January 29, 2010, are as follows:
January 28, 2011 January 29, 2010
Accumulated Accumulated
Gross Amortization Net Gross Amortization Net
(in millions)
Customer relationships $ 1,363 $ (309) $ 1,054 $ 1,324 $ (117) $ 1,207
Technology 647 (322) 325 568 (196) 372
Non-compete agreements 68 (26) 42 64 (8) 56
Tradenames 54 (31) 23 51 (17) 34
Amortizable intangible assets 2,132 (688) 1,444 2,007 (338) 1,669
In-process research and development 26 - 26 - - -
Indefinite lived intangible assets 25 - 25 25 - 25
Total intangible assets $ 2,183 $ (688) $ 1,495 $ 2,032 $ (338) $ 1,694
During Fiscal 2011, Dell recorded additions to intangible assets and in-process research and development of $126 million and
$26 million, respectively, which were primarily related to Dell's Fiscal 2011 business acquisitions. During Fiscal 2010, Dell recorded
additions to intangible assets of $1.2 billion, which were related to Dell's acquisition of Perot Systems.
Amortization expense related to finite-lived intangible assets was approximately $350 million and $205 million in Fiscal 2011 and Fiscal
2010, respectively. During the fiscal years ended January 28, 2011, and January 29, 2010, Dell did not record any impairment charges as
a result of its analysis of its intangible assets.
Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of January 28, 2011, over the next five fiscal
years and thereafter is as follows:
Fiscal Years (in millions)
2012 $ 313
2013 279
2014 240
2015 147
2016 117
Thereafter 348
Total $ 1,444
87