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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3—Consolidated Financial Statement Details (Continued)
Non
-Current Liabilities
Note 4—Goodwill and Other Intangible Assets
The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 1 to 10 years. The following
table summarizes the components of gross and net intangible asset balances as of September 27, 2008 and September 29, 2007 (in millions):
In June 2008, the Company completed an acquisition of a business for total cash consideration, net of cash acquired, of $220 million, of which
$169 million has been allocated to goodwill, $51 million to deferred tax assets and $7 million to acquired intangible assets.
The Company’s goodwill is allocated primarily to the America’s reportable operating segment. Amortization expense related to acquired
intangible assets was $46 million, $35 million, and $12 million in 2008, 2007, and 2006, respectively. As of September 27, 2008, and
September 29, 2007, the remaining weighted-average amortization period for acquired technology was 7.0 years and 7.1 years, respectively.
Expected annual amortization expense related to acquired technology as of September 27, 2008, is as follows (in millions):
70
2008
2007
Deferred revenue
—
non
-
current
$
3,029
$
849
Deferred tax liabilities
675
619
Other non
-
current liabilities
746
67
Total non
-
current liabilities
$
4,450
$
1,535
2008
2007
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Definite lived and amortizable acquired technology
$
308
$
(123
)
$
185
$
276
$
(77
)
$
199
Indefinite lived and unamortizable trademarks
100
—
100
100
—
100
Total acquired intangible assets
$
408
$
(123
)
$
285
$
376
$
(77
)
$
299
Goodwill
$
207
$
—
$
207
$
38
$
—
$
38
Fiscal Years
2009
$
50
2010
35
2011
32
2012
26
2013
13
Thereafter
29
Total
$
185