Goodwill And Purchased Intangible Assets

Goodwill and Purchased Intangible Assets


(a)	Goodwill

The following table presents the goodwill allocated to the Company's reportable segments as of and during the three months ended October 27, 2012 (in millions):



	Balance at July 28, 2012		Acquisition of NDS		All Other Acquisitions		Balance at October 27, 2012
Americas	$	11,755	$	1,230	$	1	$	12,986
EMEA	3,287		1,327		—		4,614
APJC	1,956		887		—		2,843
Total	$	16,998	$	3,444	$	1	$	20,443


(b)	Purchased Intangible Assets

The following table presents details of the Company's intangible assets acquired through business combinations completed during the three months ended October 27, 2012 (in millions, except years):



	FINITE LIVES									INDEFINITE LIVES		TOTAL
	TECHNOLOGY			CUSTOMER RELATIONSHIPS			OTHER			IPR&D		TOTAL
	Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Amount		Amount
NDS Group Limited	6.4	$	807	6.7	$	818	7.4	$	27	$	94	$	1,746
All other acquisitions	3.0	7		—	—		—	—		—		7
Total		$	814		$	818		$	27	$	94	$	1,753

The following tables present details of the Company’s purchased intangible assets (in millions):



October 27, 2012	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	3,053	$	(1,027	)	$	2,026
Customer relationships	3,079		(1,780		)	1,299
Other	73		(43		)	30
Total purchased intangible assets with finite lives	6,205		(2,850		)	3,355
In-process research and development, with indefinite lives	94		—			94
Total	$	6,299	$	(2,850	)	$	3,449



July 28, 2012	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	2,267	$	(908	)	$	1,359
Customer relationships	2,261		(1,669		)	592
Other	49		(41		)	8
Total	$	4,577	$	(2,618	)	$	1,959

Purchased intangible assets include intangible assets acquired through business combinations as well as through direct purchases or licenses.

The following table presents the amortization of purchased intangible assets (in millions):



	Three Months Ended
	October 27, 2012		October 29, 2011
Amortization of purchased intangible assets:
Cost of sales	$	143	$	96
Operating expenses	122		99
Total	$	265	$	195

There were no impairment charges related to purchased intangible assets during the three months ended October 27, 2012 and October 29, 2011.

The estimated future amortization expense of purchased intangible assets with finite lives as of October 27, 2012 is as follows (in millions):



Fiscal Year	Amount
2013 (remaining nine months)	$	702
2014	785
2015	701
2016	474
2017	325
Thereafter	368
Total	$	3,355

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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