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Table of Contents
Note 5 – Goodwill and Other Intangible Assets
The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from three to ten years. The
following table summarizes the components of gross and net intangible asset balances as of September 25, 2010 and September 26, 2009 (in
millions):
During 2010, the Company completed various business acquisitions for an aggregate cash consideration, net of cash acquired, of $638 million,
of which $535 million was allocated to goodwill and $107 million to acquired intangible assets.
The Company’
s gross carrying amount of goodwill was $741 million and $206 million as of September 25, 2010 and September 26, 2009,
respectively. The Company did not have any goodwill impairment during 2010, 2009 or 2008. The Company’
s goodwill is allocated primarily to
the America’
s reportable operating segment. Amortization expense related to acquired intangible assets was $69 million, $53 million and $46
million in 2010, 2009 and 2008, respectively. As of September 25, 2010 and September 26, 2009, the weighted-
average amortization period for
acquired intangible assets was 5.5 years and 7.2 years, respectively.
Expected annual amortization expense related to acquired intangible assets as of September 25, 2010, is as follows (in millions):
67
2010
2009
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Definite lived and amortizable acquired intangible
assets
$
487
$
(245
)
$
242
$
323
$
(176
)
$
147
Indefinite lived and unamortizable trademarks
100
0
100
100
0
100
Total acquired intangible assets
$
587
$
(245
)
$
342
$
423
$
(176
)
$
247
Years
2011
$
83
2012
74
2013
39
2014
18
2015
17
Thereafter
11
Total
$
242