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Table of Contents DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 8 — GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill allocated to Dell's business segments as of February 3, 2012, and January 28, 2011, and changes in the carrying amount of goodwill for the
respective periods, were as follows:
Fiscal Year Ended
February 3, 2012
Large
Enterprise Public Small and
Medium
Business
Consumer Total
(in millions)
Balance at beginning of period $ 1,424 $ 2,164 $ 476 $ 301 $ 4,365
Goodwill acquired during the period 800 386 287 6 1,479
Adjustments (2) (3) (4) 3 (6)
Balance at end of period $ 2,222 $ 2,547 $ 759 $ 310 $ 5,838
January 28, 2011
Large
Enterprise Public Small and
Medium
Business
Consumer Total
(in millions)
Balance at beginning of period $ 1,361 $ 2,026 $ 389 $ 298 $ 4,074
Goodwill acquired during the period 62 135 87 — 284
Adjustments 1 3 — 3 7
Balance at end of period $ 1,424 $ 2,164 $ 476 $ 301 $ 4,365
Goodwill is tested annually during the second fiscal quarter and whenever events or circumstances indicate an impairment may have occurred. If the carrying
amount of goodwill exceeds its fair value, estimated based on discounted cash flow analyses, an impairment charge would be recorded. Based on the results of
the annual impairment tests, no impairment of goodwill existed at July 30, 2011. Further, no triggering events have transpired since July 30, 2011, that would
indicate a potential impairment of goodwill as of February 3, 2012. Dell did not have any accumulated goodwill impairment charges as of February 3, 2012.
Intangible Assets
Dell's intangible assets associated with completed acquisitions at February 3, 2012, and January 28, 2011, were as follows:
February 3, 2012 January 28, 2011
Gross Accumulated
Amortization Net Gross Accumulated
Amortization Net
(in millions)
Customer relationships $ 1,569 $ (506) $ 1,063 $ 1,363 $ (309) $ 1,054
Technology 1,156 (490) 666 647 (322) 325
Non-compete agreements 70 (42) 28 68 (26) 42
Tradenames 81 (41) 40 54 (31) 23
Amortizable intangible assets 2,876 (1,079) 1,797 2,132 (688) 1,444
In-process research and development 34 — 34 26 — 26
Indefinite lived intangible assets 26 — 26 25 — 25
Total intangible assets $ 2,936 $ (1,079) $ 1,857 $ 2,183 $ (688) $ 1,495
During Fiscal 2012 and Fiscal 2011, Dell recorded additions to intangible assets of $715 million and $126 million , respectively, and additions to in-process
research and development of $38 million and $26 million , respectively. These additions were
85