GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Feb. 02, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table presents goodwill allocated to the Company's business segments as of February 2, 2018, February 3, 2017, and January 29, 2016 and changes in the carrying amount of goodwill for the respective periods:



	Client Solutions Group			Infrastructure Solutions Group (a)			VMware		Other Businesses (b)			Total
	(in millions)
Balances as of January 29, 2016	$	4,428		$	3,907		$	—	$	71		$	8,406
Goodwill acquired	—			12,872			15,070		3,597			31,539
Impact of foreign currency translation	—			(169		)	—		(32		)	(201		)
Goodwill divested	—			(834		)	—		—			(834		)
Other adjustments	(191		)	(169		)	—		360			—
Balances as of February 3, 2017	4,237			15,607			15,070		3,996			38,910
Goodwill acquired	—			—			565		9			574
Impact of foreign currency translation	—			359			—		90			449
Goodwill divested	—			(13		)	—		—			(13		)
Balances as of February 2, 2018	$	4,237		$	15,953		$	15,635	$	4,095		$	39,920

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(a)	Infrastructure Solutions Group is composed of the Core Storage, Servers, and Networking goodwill reporting unit and Virtustream goodwill reporting unit.


(b)	Other Businesses consists of offerings by RSA Information Security, SecureWorks, Pivotal, and Boomi.

Goodwill and indefinite-lived intangible assets are tested for impairment annually during the third fiscal quarter and whenever events or circumstances may indicate that an impairment has occurred. Based on the results of the annual impairment test, which was a quantitative test for certain goodwill reporting units and a qualitative test for others, no impairment of goodwill or indefinite-lived intangible assets existed for any reporting unit as of November 3, 2017. As a result of this analysis, it was determined that the excess of fair value over carrying amount was greater than 20% for all of the Company's existing goodwill reporting units as of November 3, 2017, with the exception of the Core Storage, Servers, and Networking goodwill reporting unit within the Infrastructure Solutions Group segment, which had an excess of fair value over carrying amount of 18% as of such date. Management will continue to monitor the Core Storage, Servers, and Networking goodwill reporting unit and consider potential impacts to the impairment assessment. Further, the Company did not have any accumulated goodwill impairment charges as of February 2, 2018.

Management exercised significant judgment related to the above assessment, including the identification of goodwill reporting units, assignment of assets and liabilities to goodwill reporting units, assignment of goodwill to reporting units, and determination of the fair value of each goodwill reporting unit. The fair value of each goodwill reporting unit is generally estimated using a combination of public company multiples and discounted cash flow methodologies. This analysis requires significant judgment, including estimation of future cash flows, which is dependent on internal forecasts, the estimation of the long-term growth rate of the Company's business, and the determination of the Company's weighted average cost of capital. Changes in these estimates and assumptions could materially affect the fair value of the goodwill reporting unit, potentially resulting in a non-cash impairment charge.

Intangible Assets

The Company's intangible assets as of February 2, 2018 and February 3, 2017 were as follows:



	February 2, 2018							February 3, 2017
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(in millions)
Customer relationships	$	22,764	$	(8,637	)	$	14,127	$	22,708	$	(5,552	)	$	17,156
Developed technology	15,586		(6,196		)	9,390		14,569		(2,510		)	12,059
Trade names	1,277		(407		)	870		1,268		(201		)	1,067
Leasehold assets (liabilities)	128		(6		)	122		128		(1		)	127
Definite-lived intangible assets	39,755		(15,246		)	24,509		38,673		(8,264		)	30,409
In-process research and development	—		—			—		890		—			890
Indefinite-lived trade names	3,756		—			3,756		3,754		—			3,754
Total intangible assets	$	43,511	$	(15,246	)	$	28,265	$	43,317	$	(8,264	)	$	35,053

Amortization expense related to definite-lived intangible assets was approximately $7.0 billion, $3.7 billion, and $2.0 billion for the fiscal years ended February 2, 2018, February 3, 2017, and January 29, 2016, respectively. The amortization expense for the fiscal year ended February 2, 2018 was primarily related to the intangible assets acquired in the EMC merger transaction. There were no material impairment charges related to intangible assets during the fiscal years ended February 2, 2018, February 3, 2017, and January 29, 2016.

Estimated future annual pre-tax amortization expense of definite-lived intangible assets as of February 2, 2018 over the next five fiscal years and thereafter is as follows:



Fiscal Years	(in millions)
2019	$	6,083
2020	4,297
2021	3,356
2022	2,638
2023	1,754
Thereafter	6,381
Total	$	24,509

- 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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