DELL INC | 2013 | FY | 3


NOTE 8 — GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill allocated to Dell's business segments as of February 1, 2013, and February 3, 2012, and changes in the carrying amount of goodwill for the respective periods, were as follows:
 
 
Fiscal Year Ended
 
 
February 1, 2013
 
 
Large
Enterprise
 
Public
 
Small and
Medium
Business
 
Consumer
 
Total
 
 
(in millions)
Balance at beginning of period
 
$
2,222

 
$
2,547

 
$
759

 
$
310

 
$
5,838

Goodwill acquired during the period
 
1,510

 
981

 
996

 
—

 
3,487

Adjustments
 
(9
)
 
(8
)
 
(4
)
 
—

 
(21
)
Balance at end of period
 
$
3,723

 
$
3,520

 
$
1,751

 
$
310

 
$
9,304

 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
Goodwill is tested annually during the second fiscal quarter and whenever events or circumstances indicate an impairment may have occurred. Based on the results of the annual impairment tests, performed during the second quarter of Fiscal 2013, no impairment of goodwill existed at August 3, 2012. Further, no triggering events have transpired since August 3, 2012, that would indicate a potential impairment of goodwill as of February 1, 2013. Dell did not have any accumulated goodwill impairment charges as of February 1, 2013.
Intangible Assets
Dell's intangible assets associated with completed acquisitions at February 1, 2013, and February 3, 2012, were as follows:
 
 
February 1, 2013
 
February 3, 2012
 
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
 
 
(in millions)
Customer relationships
 
$
2,184

 
$
(721
)
 
$
1,463

 
$
1,569

 
$
(506
)
 
$
1,063

Technology
 
2,513

 
(827
)
 
1,686

 
1,156

 
(490
)
 
666

Non-compete agreements
 
75

 
(54
)
 
21

 
70

 
(42
)
 
28

Trade names
 
159

 
(59
)
 
100

 
81

 
(41
)
 
40

Amortizable intangible assets
 
4,931

 
(1,661
)
 
3,270

 
2,876

 
(1,079
)
 
1,797

In-process research and development
 
78

 
—

 
78

 
34

 
—

 
34

Indefinite lived intangible assets
 
26

 
—

 
26

 
26

 
—

 
26

Total intangible assets
 
$
5,035

 
$
(1,661
)
 
$
3,374

 
$
2,936

 
$
(1,079
)
 
$
1,857



Amortization expense related to finite-lived intangible assets was $613 million, $391 million, and $349 million in Fiscal 2013, Fiscal 2012, and Fiscal 2011, respectively. There were no material impairment charges related to intangible assets for the fiscal years ended February 1, 2013, and February 3, 2012.
Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of February 1, 2013, over the next five fiscal years and thereafter is as follows:
Fiscal Years
(in millions)
2014
$
770

2015
682

2016
613

2017
515

2018
370

Thereafter
320

Total
$
3,270

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