Annual Repor-Dell

Any subsequent changes to the purchase price

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Unformatted text preview: ore detailed analyses, but not to exceed one year from the date of acquisition, will change the amount of the purchase prices allocable to goodwill. Any subsequent changes to the purchase price allocations that are material to Dell's consolidated financial results will be adjusted retroactively. Dell recorded approximately $284 million in goodwill and $141 million in intangible assets related to these acquisitions. The goodwill related to these acquisitions is not deductible for tax purposes. In conjunction with these acquisitions, Dell will incur $56 million in compensation-related expenses that will be expensed over a period of one to three years. There was no contingent consideration related to these acquisitions. Dell has not presented pro forma results of operations for the Fiscal 2011 acquisitions because these acquisitions are not material to Dell's consolidated results of operations, financial position, or cash flows on either an individual or an aggregate basis. Fiscal 2010 Acquisitions On November 3, 2009, Dell completed its acquisition of all the outstanding shares of the Class A common stock of Perot Systems, a worldwide provider of information technology and business solutions, for $3.9 billion in cash. This acquisition is expected to provide customers a broader range of IT services and solutions and better position Dell for its own immediate and long-term growth and efficiency. Perot Systems was primarily integrated into the Large Enterprise and Public segments for reporting purposes. Perot Systems' results of operations were included in Dell's results beginning November 3, 2009. spi2532X_appB_B1-B24.indd B-11 spi2532X_appB_B1-B24.indd B-11 1/20/12 4:20 PM 1/20/12 4:20 PM Confirming Pages B-12 APPENDIX B Dell Annual Report (selected pages) DELL INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table summarizes the consideration paid for Perot Systems and the amounts of assets acquired and liabilities assumed recognized at the acquisition date: Cash and cash equivalents Accounts receivable, net Other assets Property, plant, and equipment Identifiable intangible assets Deferred tax liability, net(a) Other liabilities Total identifiable net assets Goodwill Total purchase price $ Total (in millions) $ 266 410 58 323 1,174 (424) (256) 1,551 2,327 3,878 (a) The deferred tax liability, net primarily rel...
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