Goodwill and Intangible Assets (Notes)

12 Months Ended

Feb. 03, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

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 primarily related to Dell's Fiscal 2012 and Fiscal 2011 business acquisitions.

Amortization expense related to finite-lived intangible assets was approximately $391 million and $350 million in Fiscal 2012 and Fiscal 2011, respectively. There were no material impairment charges related to intangible assets for the fiscal years ended February 3, 2012, and January 28, 2011.

Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of February 3, 2012, over the next five fiscal years and thereafter is as follows:



Fiscal Years	(in millions)
2013	$	388
2014	370
2015	275
2016	227
2017	189
Thereafter	348
Total	$	1,797

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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