Apple 2007 Annual Report Download - page 77

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Other Income and Expense
Note 4—Goodwill and Other Intangible Assets
The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 2 to 10 years. The following
table summarizes the components of gross and net intangible asset balances (in millions):
As of September 29, 2007, and September 30, 2006, the weighted-average amortization period for acquired technology was 7.1 years and
8.5 years, respectively.
During 2006, the Company sold certain assets related to its PowerSchool web-based student information system operations. In connection with
this sale, the Company reduced goodwill by $31 million for the outstanding balance from the acquisition of PowerSchool, Inc. in 2001 and
recognized a $4 million pre-tax gain, which is reflected in other income and expense in the Consolidated Statement of Operations.
Expected annual amortization expense related to acquired technology is as follows (in millions):
Amortization expense related to acquired intangible assets was $35 million, $12 million, and $9 million in 2007, 2006, and 2005, respectively.
73
2007
2006
2005
Interest income
$
647
$
394
$
183
Other income (expense), net
(48
)
(29
)
(18
)
Total other income and expense
$
599
$
365
$
165
September 29, 2007
September 30, 2006
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Definite lived and amortizable acquired
technology
$
276
$
(77
)
$
199
$
181
$
(42
)
$
139
Indefinite lived and unamortizable
trademarks
100
—
100
—
—
—
Total acquired intangible assets
$
376
$
(77
)
$
299
$
181
$
(42
)
$
139
Goodwill
$
38
$
—
$
38
$
38
$
—
$
38
Fiscal Years:
2008
$
52
2009
37
2010
28
2011
25
2012
19
Thereafter
38
Total
$
199