EMC 2007 Annual Report Download - page 72

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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
In connection with the Smarts acquisition, we commenced integration activities which resulted in recognizing $1.9 million in liabilities for employee
termination benefits and $0.8 million for lease and contract terminations, of which $2.5 million was paid through December 31, 2007. All liabilities associated
with the employee termination benefits have been paid. We expect to pay the liabilities associated with the lease and contract terminations through 2008.
Pro forma Effects of the Acquisitions
The following gives pro forma effect as if the 2007 acquisitions, 2006 acquisitions and the 2005 acquisitions had been consummated as of the beginning
of the fiscal year in the year the transactions closed and the beginning of the prior fiscal year. The pro forma results are not necessarily indicative of what
actually would have occurred had the acquisitions been in effect for the periods presented (table in thousands, except per share data):
(unaudited)
Year Ended December 31,
2007 2006 2005
Revenue $13,506,053 $11,655,856 $10,188,573
Net income 1,642,962 1,049,664 982,296
Net income per weighted average share, basic $ 0.79 $ 0.47 $ 0.41
Net income per weighted average share, diluted $ 0.76 $ 0.46 $ 0.40
The pro forma impact on reported net income per weighted average share was primarily attributable to amortization of acquired intangible assets,
forgone interest income and interest expense associated with the RSA acquisition.
Intangible Assets
Intangible assets, excluding goodwill, as of December 31, 2007 and 2006, consist of (tables in thousands):
2007
Category
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
2006
Category
Gross Carrying
Amount
Accumulated
Amortization Net Book Value
Purchased technology $ 817,066 $ (338,493) $ 478,573
Patents 61,857 (61,130) 727
Software licenses 56,698 (19,999) 36,699
Trademarks and tradenames 108,409 (20,465) 87,944
Customer relationships and customer lists 481,985 (89,168) 392,817
Other 13,130 (6,341) 6,789
Total intangible assets, excluding goodwill $ 1,539,145 $ (535,596) $ 1,003,549
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