Apple 2005 Annual Report Download - page 80

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3—Consolidated Financial Statement Details (in millions) (Continued)
Non
-current Liabilities
Interest and Other Income, net
Note 4—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 following table summarizes the components of gross and net intangible asset balances (in millions):
During the fourth quarter of 2005, the Company recorded an adjustment of approximately $11 million to goodwill relating to a reduction of
valuation allowances that were recorded at the time certain net operating loss carryforwards (NOLs) were acquired in previous business
combinations. During the fourth quarter of 2005, these NOLs were deemed to be more likely than not to be realized and accordingly the
valuation allowances were reversed against the related goodwill that was recognized at the time of the acquisitions.
During the third quarter of 2004, the Company recorded an adjustment of approximately $5 million to goodwill related to the acquisition of
PowerSchool, Inc. (PowerSchool) in 2001. This reduction of goodwill included the cancellation of 158,334 shares of the Company’s common
stock, valued at approximately $2 million, that were previously held in escrow and were refunded upon resolution of certain matters arising out
of the acquisition of PowerSchool. This adjustment also included approximately $3 million to adjust the original estimates of the pre-
acquisition PowerSchool restructuring liability to actual costs incurred.
78
2005
2004
Deferred revenue—non-current
$
281
$
202
Deferred tax liabilities
308
113
Other non-current liabilities
12
8
Total non-current liabilities
$
601
$
323
2005
2004
2003
Interest income
$
183
$
64
$
69
Interest expense
—
(
3
)
(8
)
Gains on sales of short term investments
—
1
21
Other income (expense), net
(18
)
(9
)
1
Total interest and other income, net
$
165
$
53
$
83
September 24, 2005
September 25, 2004
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Goodwill
$
69
$
—
$
69
$
80
$
—
$
80
Other acquired intangible assets
5
(5
)
—
5
(5
)
—
Acquired technology
61
(34
)
27
42
(25
)
17
Total acquired intangible assets
$
135
$
(39
$
96
$
127
$
(30
$
97
)
)