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Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill
 3 Months Ended
May 01, 2020
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract]  
Business Combinations, Definite-Lived Intangible Assets, Net and Goodwill Business Combination, Definite-Lived Intangible Assets, Net and Goodwill
Business Combination
During the first quarter of fiscal 2021, VMware completed the acquisition of Nyansa, Inc., a developer of artificial intelligence-based network analytics, to accelerate the delivery of end-to-end monitoring and troubleshooting capacities within VMware SD-WAN by VeloCloud. The total purchase price, net of cash acquired, was $38 million. The purchase price primarily included $14 million of identifiable intangible assets and $24 million of goodwill that is not expected to be deductible for tax purposes. The identifiable intangible assets, which primarily consisted of completed technology, have estimated useful lives of one year to four years.
The pro forma financial information assuming the acquisition had occurred as of the beginning of the fiscal year prior to the fiscal year of acquisition, as well as the revenue and earnings generated during the current fiscal year, were not material for disclosure purposes.
Definite-Lived Intangible Assets, Net
As of the periods presented, definite-lived intangible assets consisted of the following (amounts in tables in millions):
 
May 1, 2020
 
Weighted-Average Useful Lives
(in years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Book Value
Purchased technology
5.7
 
$
921

 
$
(412
)
 
$
509

Customer relationships and customer lists
11.4
 
741

 
(227
)
 
514

Trademarks and tradenames
7.6
 
132

 
(64
)
 
68

Other
2.0
 
21

 
(6
)
 
15

Total definite-lived intangible assets
 
 
$
1,815

 
$
(709
)
 
$
1,106

 
January 31, 2020
 
Weighted-Average Useful Lives
(in years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Book Value
Purchased technology
5.7
 
$
1,030

 
$
(488
)
 
$
542

Customer relationships and customer lists
11.4
 
739

 
(200
)
 
539

Trademarks and tradenames
7.6
 
131

 
(58
)
 
73

Other
2.0
 
22

 
(4
)
 
18

Total definite-lived intangible assets
 
 
$
1,922

 
$
(750
)
 
$
1,172


Amortization expense on definite-lived intangible assets was $80 million and $69 million during the three months ended May 1, 2020 and May 3, 2019, respectively.
Based on intangible assets recorded as of May 1, 2020 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (table in millions):
Remainder of 2021
$
230

2022
264

2023
214

2024
168

2025
91

Thereafter
139

Total
$
1,106


Goodwill
The following table summarizes the changes in the carrying amount of goodwill during the three months ended May 1, 2020 (table in millions):
Balance, January 31, 2020
$
9,329

Increase in goodwill related to business combination
24

Balance, May 1, 2020
$
9,353