Microsoft 2009 Annual Report Download - page 60

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PAGE 60
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 11 INTANGIBLE ASSETS
The components of intangible assets, all of which are finite-lived, were as follows:
(In millions)
June 30,
2009 2008
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Contract-based $1,087 $ (855 ) $ 232 $1,074
$ (796) $ 278
Technology-based 2,033 (1,090 ) 943 1,677
(672) 1,005
Marketing-related 188 (97 ) 91 171
(65) 106
Customer-related 732 (239 ) 493 708
(124) 584
Total $4,040 $(2,281 ) $1,759 $3,630
$(1,657) $1,973
During fiscal year 2009 and 2008, we recorded additions to intangible assets of $354 million and $1.6 billion,
respectively. We estimate that we have no significant residual value related to our intangible assets.
The components of intangible assets acquired during fiscal years 2009 and 2008 were as follows:
(In millions)
Year Ended June 30, 2009
2008
Amount
Weighted
Average Life
Amount
Weighted
Average Life
Contract-based $ 26 4 years
$ 91 6 years
Technology-based 293 4 years
787 4 years
Marketing-related 7 5 years
116 5 years
Customer-related 28 2 years
589 6 years
Total $354 $1,583
Acquired intangibles generally are amortized on a straight-line basis over their weighted average lives. Intangible
assets amortization expense was $591 million for fiscal year 2009, $472 million for fiscal year 2008, and $236 million
for fiscal year 2007. The following table outlines the estimated future amortization expense related to intangible
assets as of June 30, 2009:
(In millions)
Y
ear Ended June 30, Amount
2010 $ 562
2011 511
2012 455
2013 191
2014 and thereafter 40
Total $1,759