Apple 2003 Annual Report Download - page 62

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Goodwill and Other Intangible Assets
The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 3 to 10 years. The Company
ceased amortization of goodwill at the beginning of fiscal 2002 when it adopted SFAS No. 142.
The following table summarizes the components of gross and net intangible asset balances (in millions):
(a)
September 27, 2003
September 28, 2002
Gross Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Goodwill (a)
$
85
—
$
85
$
85
—
$
85
Other acquired intangible assets
5
(5
)
—
5
(5
)
—
Acquired technology
42
(18
)
24
42
(8
)
34
Total acquired intangible assets
$
132
$
(23
)
$
109
$
132
$
(13
)
$
119
Accumulated amortization related to goodwill of $55 million arising prior to the adoption of SFAS No. 142 has been reflected in the
gross carrying amount of goodwill as of September 27, 2003 and September 28, 2002.
Expected annual amortization expense related to acquired technology is as follows (in millions):
78
Amortization expense related to acquired intangible assets is as follows (in millions):
Net loss and net loss per share adjusted to exclude amortization of goodwill in fiscal periods prior to the adoption of SFAS No. 142 in fiscal
2002 follows (in millions, except per share amounts):
Fiscal Years:
2004 $
7
2005
5
2006
3
2007
2
Thereafter
7
Total expected annual amortization expense
$
24
2003
2002
2001
Goodwill amortization
$
—
$
—
$
16
Other acquired intangible assets amortization
—
1
3
Acquired technology amortization
10
5
2
Total amortization
$
10
$
6
$
21
2001
Net loss, as reported
$
(25
)
Add: goodwill amortization
$
16
Net loss, as adjusted
$
(9
)
Basic loss per share, as reported
$
(0.07
)