Business Combinations, Intangibles and Goodwill

During the six months ended June 30, 2015, EMC acquired three businesses which were not material either individually or in the aggregate to our June 30, 2015 results. Complementing the Information Storage segment, we acquired all of the outstanding capital stock of Renasar Technologies, Inc., a provider of extensible physical middleware, and CloudLink, a provider of cloud data security software. Complementing our Pivotal segment, we acquired all of the outstanding capital stock of Quickstep Technologies, LLC, a query execution technology developer. Also during the six months ended June 30, 2015, VMware acquired all of the outstanding capital stock of Immidio B.V.

The aggregate consideration for these four acquisitions was $65 million, which consisted of $64 million of cash consideration, net of cash acquired in the second quarter of 2015. The consideration was allocated to the fair value of the assets acquired and liabilities assumed based on estimated fair values as of the respective acquisition dates. The aggregate allocation to goodwill, intangibles, and net liabilities was approximately $49 million, $24 million and $8 million, respectively.

The intangible assets acquired were primarily comprised of purchased developed technology which have a weighted-average amortization period of 3.6 years. Most of our intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized; the remainder are amortized on a straight-line basis. Goodwill is calculated as the excess of the consideration over the fair value of the net assets, including intangible assets, and is primarily related to expected synergies from the transaction. The goodwill is not deductible for U.S. federal income tax purposes. The results of these acquisitions have been included in the consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired companies were not material to our consolidated results of operations for the three and six months ended June 30, 2015 or 2014.

Intangible Assets

Intangible assets, excluding goodwill, as of June 30, 2015 and December 31, 2014 consist of (tables in millions):



	June 30, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,961	$	(1,788	)	$	1,173
Patents	225		(124		)	101
Software licenses	110		(94		)	16
Trademarks and tradenames	226		(146		)	80
Customer relationships and customer lists	1,473		(1,032		)	441
Leasehold interest	152		(18		)	134
Other	46		(38		)	8
Total intangible assets, excluding goodwill	$	5,193	$	(3,240	)	$	1,953



	December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,935	$	(1,668	)	$	1,267
Patents	225		(117		)	108
Software licenses	108		(93		)	15
Trademarks and tradenames	226		(136		)	90
Customer relationships and customer lists	1,473		(974		)	499
Leasehold interest	152		(16		)	136
Other	44		(34		)	10
Total intangible assets, excluding goodwill	$	5,163	$	(3,038	)	$	2,125

Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the six months ended June 30, 2015 consist of (table in millions):



	Six Months Ended June 30, 2015
	Information Storage		Enterprise Content Division		RSA Information Security		Pivotal		VMware Virtual Infrastructure		Total
Balance, beginning of the period	$	8,266	$	1,486	$	2,203	$	171	$	4,008	$	16,134
Goodwill resulting from acquisitions	29		—		—		3		17		49
Finalization of purchase price allocations and other, net	2		—		—		—		—		2
Balance, end of the period	$	8,297	$	1,486	$	2,203	$	174	$	4,025	$	16,185