Business Combinations, Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

G. Business Combinations, Goodwill and Intangible Assets, Net

Business Combinations

The results of operations of the acquired businesses mentioned below have been included in VMware’s consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired businesses were not material to VMware’s consolidated results of operations in the three and six months ended June 30, 2012 and 2011.

In the six months ended June 30, 2012, VMware acquired three businesses. The aggregate consideration for these acquisitions was $102.2 million, net of cash acquired. The following table summarizes the allocation of the consideration to the fair value of the tangible and intangible assets acquired in the six months ended June 30, 2012 (table in thousands):

Other current assets	$	531
Intangible assets	33,800
Goodwill	70,798
Other assets	106
Total tangible and intangible assets acquired	105,235
Unearned revenues	(100		)
Deferred tax liabilities, net	(1,460		)
Accrued liabilities and other	(1,509		)
Total liabilities assumed	(3,069		)
Fair value of tangible and intangible assets acquired and liabilities assumed	$	102,166

Intangible Assets, Net

Changes in the carrying amount of intangible assets, net, excluding goodwill for the six months endedJune 30, 2012 consisted of the following (table in thousands):

Balance, January 1, 2012	$	407,375
Additions to intangible assets related to business combinations	33,800
Change in accumulated amortization	(38,750		)
Balance, June 30, 2012	$	402,425

The following table summarizes the fair value of the intangible assets acquired by VMware through business combinations in the six months endedJune 30, 2012 (table in thousands):

	Weighted-Average Useful Lives (in years)	Fair Value Amount
Purchased technology	5.9	$	33,800
Total intangible assets acquired, net, excluding goodwill		$	33,800

Goodwill

Changes in the carrying amount of goodwill for the six months endedJune 30, 2012 consisted of the following (table in thousands):

Balance, January 1, 2012	$	1,759,080
Increase in goodwill related to business combinations	70,798
Deferred tax adjustments to purchase price allocations on previous acquisitions	(2,814		)
Other adjustments to purchase price allocations on previous acquisitions	4
Balance, June 30, 2012	$	1,827,068