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TableofContents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
DuringtheyearsendedDecember31,2015,2014and2013,amortizationexpensewas$145million,$141million,and$107million,respectively.
BasedonintangibleassetsrecordedasofDecember31,2015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):
2016 $ 129
2017 122
2018 109
2019 88
2020 38
Thereafter 130
Total $ 616
Goodwill
ThefollowingtablesummarizesthechangesinthecarryingamountofgoodwillduringtheyearsendedDecember31,2015and2014(tableinmillions):
December 31,
2015
2014
Balance,beginningoftheyear $ 3,964
$ 3,027
Increaseingoodwillrelatedtobusinesscombinations 29
941
Deferredtaxadjustmentstopurchasepriceallocationsonacquisitions —
(4)
Balance,endoftheyear $ 3,993
$ 3,964
C. Realignment Charges
Duringtheyearended2015,VMwareeliminatedapproximately380positionsacrossallmajorfunctionalgroupsandgeographiestostreamlineitsoperations.
Asaresultoftheseactions,$23millionofseverance-relatedrealignmentchargeswererecognizedduringtheyearendedDecember31,2015ontheconsolidated
statementsofincome.AsofDecember31,2015,$3millionremainedinaccruedexpensesandotherontheconsolidatedbalancesheetsandisexpectedtobepaid
during2016.
Duringtheyearended2014,VMwareeliminatedapproximately180positionsacrossallmajorfunctionalgroupsandgeographiestostreamlineitsoperations.
Asaresultoftheseactions,$16millionofseverance-relatedrealignmentchargeswererecognizedduringtheyearendedDecember31,2014ontheconsolidated
statementsofincome.
Duringtheyearended2013,VMwareapprovedandinitiatedabusinessrealignmentplantostreamlineitsoperations.Therealignmentplanincludedthe
eliminationofapproximately710positionsandpersonnelacrossallmajorfunctionalgroupsandgeographies.DuringtheyearendedDecember31,2013,$68
millionofrealignmentchargeswererecordedontheconsolidatedstatementsofincome,whichconsistedofworkforcereductionchargesandassetimpairments.As
ofDecember31,2013,theplanhadbeencompleted.
67