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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
D. Intangibles and Goodwill
Intangible Assets
Intangible assets, excluding goodwill, as of December 31, 2010 and 2009 consist of (tables in thousands):
December 31, 2010
Gross Carrying
Amount
Accumulated
Amortization Net Book Value
Purchased technology $ 1,509,616 $ (873,095) $ 636,521
Patents 62,170 (62,134) 36
Software licenses 84,583 (72,115) 12,468
Trademarks and tradenames 171,651 (74,725) 96,926
Customer relationships and customer lists 1,275,908 (447,411) 828,497
IPR&D 43,900 — 43,900
Other 25,632 (19,713) 5,919
Total intangible assets, excluding goodwill $ 3,173,460 $ (1,549,193) $ 1,624,267
December 31, 2009
Gross Carrying
Amount
Accumulated
Amortization Net Book Value
Purchased technology $ 1,121,385 $ (743,938) $ 377,447
Patents 62,170 (62,130) 40
Software licenses 78,873 (59,040) 19,833
Trademarks and tradenames 153,331 (57,339) 95,992
Customer relationships and customer lists 899,128 (329,518) 569,610
IPR&D 116,930 — 116,930
Other 22,303 (16,523) 5,780
Total intangible assets, excluding goodwill $ 2,454,120 $ (1,268,488) $ 1,185,632
Amortization expense on intangibles was $285.3 million, $247.8 million and $280.9 million in 2010, 2009 and 2008, respectively. As of December 31,
2010, amortization expense on intangible assets for the next five years is expected to be as follows (table in thousands):
2011 $ 315,078
2012 298,145
2013 273,808
2014 228,498
2015 181,467
Total $ 1,296,996
Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment for the years ended December 31, 2010 and 2009 consist of
the following (tables in thousands):
Year Ended December 31, 2010
Information
Storage
Information
Intelligence
Group
RSA
Information
Security
VMware
Virtual
Infrastructure Total
Balance, beginning of the year $ 5,045,086 $ 1,476,520 $ 1,529,408 $ 1,159,362 $ 9,210,376
Goodwill acquired 2,287,712 — 140,013 178,201 2,605,926
Tax deduction from exercise of stock options (548) (2,424) (1,103) — (4,075)
Other adjustments (275,405) — — 275,405 —
Finalization of purchase price allocations (27,504) (6,193) (5,105) (775) (39,577)
Balance, end of the year $ 7,029,341 $ 1,467,903 $ 1,663,213 $ 1,612,193 $ 11,772,650
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