Symantec 2007 Annual Report Download - page 96

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Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
March 31, 2006
(In thousands)
Developed technology ......................... $1,597,567 $(420,887) $1,176,680
Patents..................................... 78,713 (18,416) 60,297
Backlog and other ............................ 60,661 (59,127) 1,534
$1,736,941 $(498,430) $1,238,511
On May 12, 2005, we resolved patent litigation matters with Altiris, Inc. by entering into a cross-licensing
agreement that resolved all legal claims between the companies. As part of the settlement, we paid Altiris
$10 million for use of the disputed technology. Under the transaction, we expensed $2 million of patent settlement
costs in the June 2005 quarter that was related to benefits received by us in and prior to the June 2005 quarter. The
remaining $8 million was recorded as Acquired product rights and is being amortized to Cost of revenues in the
Consolidated Statements of Income over the remaining life of the primary patent, which expires in May 2017. In
April 2007, we acquired Altiris. See Note 17 for more information.
In fiscal 2007, 2006, and 2005, amortization expense for acquired product rights was $342 million, $314 mil-
lion, and $49 million, respectively. Amortization of acquired product rights is included in Cost of revenues in the
Consolidated Statements of Income. The weighted-average remaining estimated lives of acquired product rights are
approximately three years for developed technology and approximately four years for patents. The weighted-
average remaining estimated life of acquired product rights in total is approximately four years. Annual amor-
tization of acquired product rights, based upon our existing acquired product rights and their current useful lives, is
estimated to be the following as of March 31, 2007:
2008 ............................................................. $338 million
2009 ............................................................. 332million
2010 ............................................................. 179million
2011 ............................................................. 43million
2012 ............................................................. 18million
Other intangible assets, net
Other intangible assets subject to amortization are as follows:
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
March 31, 2007
(In thousands)
Customer base ............................... $1,500,201 $(335,393) $1,164,808
Trade name . ................................ 107,207 (27,335) 79,872
Marketing-related assets ........................ 2,100 (2,100) —
Partnership agreements......................... 2,300 (1,342) 958
$1,611,808 $(366,170) $1,245,638
90
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)