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Table of Contents VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
and losses on VMware’s foreign currency forward contracts generally offset the majority of the gains and losses associated with the underlying
foreign-currency denominated assets and liabilities that VMware hedges.
VMware’s foreign currency forward contracts are generally traded on a monthly basis with a typical contractual term of one month. As of
December 31, 2011 and 2010 , VMware had outstanding forward contracts with a total notional value of $324.1 million and $238.9 million ,
respectively. The fair value of these forward contracts was immaterial as of December 31, 2011 and 2010 and therefore excluded from the fair
value tables above.
F. Business Combinations, Goodwill and Intangible Assets, Net
Business Combinations
The results of operations of all acquired businesses and transferred net assets mentioned below have been included in VMware’s
consolidated financial statements from the respective dates of purchase or transfer, as applicable. Pro forma results of operations have not been
presented as the results of the acquired businesses and transferred net assets, prior to being acquired by VMware, were not material, individually
or in aggregate, to the consolidated results of operations in the years ended December 31, 2011 , 2010 or 2009 .
The excess of the consideration for acquisitions and transferred net assets over the fair values assigned to the assets acquired and liabilities
assumed, which represents the goodwill resulting from acquisitions, was allocated to VMware's one reporting unit in the years ended
December 31, 2011 , 2010 and 2009 , respectively. Management believes that the goodwill mainly represents the synergies expected from
combining the technologies of VMware with those of acquired businesses and transferred net assets. None of the goodwill was deductible for
income tax purposes in the years ended December 31, 2011 , 2010 or 2009 .
Fiscal Year 2011
In the year ended December 31, 2011 , VMware completed six business combinations, which were not material to VMware's consolidated
financial statements, either individually or in the aggregate. The aggregate consideration for these acquisitions was $304.2 million , net of cash
acquired, and includes cash of $303.6 million and the fair value of equity awards assumed attributed to pre-combination services of $0.6
million . The following table summarizes the allocation of the consideration to the fair value of the tangible and intangible assets acquired and
liabilities assumed in the year ended December 31, 2011 (table in thousands):
Fiscal Year 2010
Business Acquisitions
In the year ended December 31, 2010 , VMware acquired six companies, which were not material to VMware’s consolidated financial
statements, either individually or in the aggregate. The aggregate consideration for these acquisitions was $293.0 million , net of cash acquired.
74
Other current assets
$
4,856
Intangible assets
104,500
Goodwill
188,395
Deferred tax assets
48,851
Other assets
100
Total tangible and intangible assets acquired
346,702
Unearned revenues
(8,243
)
Deferred tax liabilities
(25,498
)
Accrued liabilities and other
(8,717
)
Total liabilities assumed
(42,458
)
Fair value of tangible and intangible assets acquired and liabilities assumed
$
304,244