EMC 2008 Annual Report Download - page 76
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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Year Ended December 31, 2007
Gross Carrying
Amount Accumulated
Amortization Net Book Value
Purchased technology $ 867,478 $ (456,027) $ 411,451
Patents 62,120 (62,032) 88
Software licenses 67,168 (31,512) 35,656
Trademarks and tradenames 112,266 (29,968) 82,298
Customer relationships and customer lists 557,545 (151,377) 406,168
Other 13,894 (9,478) 4,416
Total intangible assets, excluding goodwill $ 1,680,471 $ (740,394) $ 940,077
Amortization expense on intangibles was $280.9 million, $204.8 million and $153.0 million in 2008, 2007 and 2006, respectively. As of December 31,
2008, amortization expense on intangible assets for the next five years is expected to be as follows (table in thousands):
2009 $236,485
2010 191,084
2011 138,596
2012 91,190
2013 64,800
Total $722,155
Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment for the years ended December 31, 2008 and 2007 consist of the
following (tables in thousands):
Year Ended December 31, 2008
Information
Storage
Content
Management
and Archiving
RSA
Information
Security
VMware
Virtual
Infrastructure Total
Balance, beginning of the year $2,983,676 $ 1,342,124 $1,525,448 $ 680,258 $6,531,506
Goodwill acquired 289,985 69,235 — 126,393 485,613
Tax deduction from exercise of stock options (62) (3,324) (475) — (3,861)
Finalization of purchase price allocations 26,864 (4,488) 5,836 5,329 33,541
Balance, end of the year $3,300,463 $ 1,403,547 $1,530,809 $ 811,980 $7,046,799
Year Ended December 31, 2007
Information
Storage
Content
Management
and Archiving
RSA
Information
Security
VMware
Virtual
Infrastructure Total
Balance, beginning of the year $2,657,320 $ 1,365,016 $1,395,768 $ 599,057 $6,017,161
Goodwill acquired 316,451 3,858 146,454 71,162 537,925
Tax deduction from exercise of stock options (162) (15,485) (3,590) — (19,237)
Finalization of purchase price allocations 10,067 (11,265) (13,184) 10,039 (4,343)
Balance, end of the year $2,983,676 $ 1,342,124 $1,525,448 $ 680,258 $6,531,506
In the fourth quarter, we test the goodwill balances for impairment. There was no impairment in 2008, 2007 or 2006.
D. Convertible Debt
In November 2006, we issued our 2011 Notes and 2013 Notes for total gross proceeds of $3.45 billion. The Notes are senior unsecured obligations and
rank equally with all other existing and future senior unsecured debt. Holders may convert
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