Business Combinations, Intangibles and Goodwill

3 Months Ended

Mar. 31, 2013

Business Combination, Goodwill and Intangible Assets Disclosure [Abstract]

Business Combinations, Intangibles and Goodwill

Business Combinations, Intangibles and Goodwill

During the three months ended March 31, 2013, VMware acquired a provider of software that optimizes storage performance and utilization in virtual environments. The consideration for this acquisition was $184.5 million, net of cash acquired. The consideration paid was allocated to the fair value of the assets acquired and liabilities assumed based on estimated fair values as of the acquisition date.

The allocation to goodwill, intangibles and net liabilities was approximately $162.3 million, $32.4 million and $10.2 million, respectively. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. The results of this acquisition 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 company were not material to our consolidated results of operations for the three months ended March 31, 2013 or 2012.

Intangible Assets

Intangible assets, excluding goodwill, as of March 31, 2013 and December 31, 2012 consist of (tables in thousands):

	March 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,234,505	$	(1,262,348	)	$	972,157
Patents	225,146		(90,673		)	134,473
Software licenses	96,695		(88,542		)	8,153
Trademarks and tradenames	172,821		(105,622		)	67,199
Customer relationships and customer lists	1,367,327		(756,562		)	610,765
In-process research and development	8,600		—			8,600
Leasehold interest	144,811		(7,910		)	136,901
Other	25,972		(26,695		)	(723		)
Total intangible assets, excluding goodwill	$	4,275,877	$	(2,338,352	)	$	1,937,525

	December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Purchased technology	$	2,233,293	$	(1,207,373	)	$	1,025,920
Patents	225,146		(86,954		)	138,192
Software licenses	96,218		(87,999		)	8,219
Trademarks and tradenames	172,821		(101,399		)	71,422
Customer relationships and customer lists	1,377,465		(723,403		)	654,062
Leasehold interest	144,811		(6,843		)	137,968
Other	25,972		(26,415		)	(443		)
Total intangible assets, excluding goodwill	$	4,275,726	$	(2,240,386	)	$	2,035,340

Goodwill

Changes in the carrying amount of goodwill, net, on a consolidated basis and by segment, for the three months ended March 31, 2013 and the year ended December 31, 2012 consist of (tables in thousands):

	Three Months Ended March 31, 2013
	Information Storage		Information Intelligence Group		RSA Information Security			VMware Virtual Infrastructure			Total
Balance, beginning of the period	$	7,441,351	$	1,484,220	$	2,022,406		$	2,891,723		$	13,839,700
Goodwill resulting from acquisitions	—		—		—			162,334			162,334
Finalization of purchase price allocations	270		6		(1,003		)	(7,395		)	(8,122		)
Balance, end of the period	$	7,441,621	$	1,484,226	$	2,021,403		$	3,046,662		$	13,993,912

	Year Ended December 31, 2012
	Information Storage			Information Intelligence Group			RSA Information Security			VMware Virtual Infrastructure			Total
Balance, beginning of the year	$	7,033,965		$	1,469,216		$	1,849,116		$	1,802,673		$	12,154,970
Goodwill resulting from acquisitions	437,868			15,097			179,389			1,091,673			1,724,027
Tax deduction from exercise of stock options	(7		)	(93		)	—			—			(100		)
Finalization of purchase price allocations	(1,281		)	—			(6,099		)	(2,623		)	(10,003		)
Goodwill derecognized in divestiture of business	(29,194		)	—			—			—			(29,194		)
Balance, end of the year	$	7,441,351		$	1,484,220		$	2,022,406		$	2,891,723		$	13,839,700