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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In connection with the Documentum acquisition, we commenced integration activities which have resulted in involuntary terminations and lease
terminations. The following summarizes the obligations recognized in connection with the Documentum acquisition and activity to date (tables in thousands):
Year Ended December 31, 2005
Category
Beginning
Balance
Adjustments
Utilization
Ending
Balance
Involuntary termination benefits $ 7,236 $ (6,540) $ (279) $ 417
Lease terminations 8,396 — (3,050) 5,346
Total $ 15,632 $ (6,540) $ (3,329) $ 5,763
Year Ended December 31, 2004
Category
Beginning
Balance
Adjustments
Utilization
Ending
Balance
Involuntary termination benefits $ 718 $ 7,552 $ (1,034) $ 7,236
Lease terminations 4,970 5,770 (2,344) 8,396
Total $ 5,688 $ 13,322 $ (3,378) $ 15,632
Year Ended December 31, 2003
Category
Beginning
Balance
Adjustments
Utilization
Ending
Balance
Involuntary termination benefits $ 718 $ — $ — $ 718
Lease terminations 4,970 — — 4,970
Total $ 5,688 $ — $ — $ 5,688
We expect to pay the remaining balance for involuntary termination benefits through 2007. The liability for leases will be paid over the remaining lease
terms through 2008.
Intangible Assets
Intangible assets, excluding goodwill as of December 31, 2005 and 2004, consist of (tables in thousands):
2005
Category
Gross Carrying
Amount
Accumulated
Amortization
Net Book Value
Purchased technology $ 489,953 $ (241,011) $ 248,942
Patents 61,857 (60,191) 1,666
Software licenses 49,788 (12,141) 37,647
Trademarks and tradenames 30,883 (15,304) 15,579
Customer relationships and customer lists 301,586 (50,373) 251,213
Other 11,530 (3,553) 7,977
Total intangible assets, excluding goodwill $ 945,597 $ (382,573) $ 563,024
2004
Category
Gross Carrying
Amount
Accumulated
Amortization
Net Book Value
Purchased technology $ 372,192 $ (163,672) $ 208,520
Patents 61,857 (59,250) 2,607
Software licenses 46,438 (5,995) 40,443
Trademarks and tradenames 27,223 (12,222) 15,001
Customer relationships and customer lists 252,716 (27,395) 225,321
Other 8,860 (1,274) 7,586
Total intangible assets, excluding goodwill $ 769,286 $ (269,808) $ 499,478