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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Intangible Assets, Net
The following table summarizes the changes in the carrying amount of intangible assets, net, excluding goodwill for the years ended December 31, 2013
and 2012 (table in millions):
As of December 31, 2013 , intangible assets, net, excluded intangible assets that were fully amortized as well as goodwill, and consisted of the following
(amounts in table in millions):
As of December 31, 2012 , intangible assets, net, excluding goodwill, consisted of the following (amounts in table in millions):
Based on intangible assets recorded as of December 31, 2013 and assuming no subsequent additions or impairment of underlying assets, the remaining
estimated annual amortization expense is expected to be as follows (table in millions):
72
December 31,
2013
2012
Balance, beginning of the year
$
732
$
407
Additions to intangible assets related to business combinations
62
423
Disposition of certain business activities (See Note C)
(54
)
—
Contribution to Pivotal (see Note O)
(28
)
—
Change in accumulated amortization
(107
)
(96
)
Other adjustments
2
(2
)
Balance, end of the year
$
607
$
732
2013
Weighted-
Average
Useful Lives
(in years)
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Purchased technology
6.6
$
580
$
(163
)
$
417
Leasehold interest
34.9
145
(11
)
134
Customer relationships and customer lists
8.7
75
(37
)
38
Trademarks and trade names
9.1
24
(7
)
17
IPR&D
1
—
1
Total intangible assets, net, excluding goodwill
$
825
$
(218
)
$
607
2012
Weighted-
Average
Useful Lives
(in years)
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Purchased technology
6.1
$
757
$
(274
)
$
483
Leasehold interest
34.9
145
(7
)
138
Customer relationships and customer lists
7.3
146
(63
)
83
Trademarks and trade names
8.0
45
(17
)
28
Other
3.0
3
(3
)
—
Total intangible assets, net, excluding goodwill
$
1,096
$
(364
)
$
732
2014
$
97
2015
95
2016
86
2017
81
2018
69
Thereafter
178
Total
$
606