|
|
NOTES TO FINANCIAL STATEMENTS |
|
NOTE 9 INTANGIBLE ASSETS
The components of finite-lived intangible assets are as follows:
(In millions) |
|
June 30 |
2004 |
|
2005 |
|
Gross
carrying
amount |
|
Accumulated
amortization |
|
Net carrying
amount |
|
Gross
carrying
amount |
|
Accumulated
amortization |
|
Net carrying
amount |
|
Contract-based |
$0,908 |
|
$(476) |
|
$432 |
|
$0,957 |
|
$(606) |
|
$351 |
Technology-based |
278 |
|
(183) |
|
95 |
|
309 |
|
(200) |
|
109 |
Marketing-related |
35 |
|
(19) |
|
16 |
|
35 |
|
(25) |
|
10 |
Customer-related |
30 |
|
(4) |
|
26 |
|
40 |
|
(11) |
|
29 |
Total |
$1,251 |
|
$(682) |
|
$569 |
|
$1,341 |
|
$(842) |
|
$499 |
During fiscal year 2004, we recorded additions to intangible assets of $355 million, of which $266 million was related to a comprehensive intellectual property license that we received in conjunction with the settlement of InterTrust v. Microsoft. During fiscal year 2005, we recorded additions to finite-lived intangible assets of approximately $90 million. No other material intangibles were acquired in fiscal year 2004. We estimate that we have no significant residual value related to our finite-lived intangible assets. The components of finite-lived intangible assets acquired during fiscal years 2004 and 2005 are as follows:
(In millions) |
|
Year Ended June 30 |
2004 |
|
2005 |
|
Amount |
|
Weighted
average life |
|
Amount |
|
Weighted
average life |
|
Contract-based |
$324 |
|
9 years |
|
$16 |
|
6 years |
Technology-based |
28 |
|
4 years |
|
64 |
|
5 years |
Customer-related |
3 |
|
3 years |
|
10 |
|
5 years |
Marketing-related |
– |
|
– |
|
– |
|
– |
Total |
$355 |
|
|
|
$90 |
|
|
Acquired finite-lived intangibles are generally amortized on a straight-line basis over weighted average periods. Intangible assets amortization expense was $170 million for fiscal year 2004 and $161 million for fiscal year 2005. The estimated future amortization expense related to intangible assets as of June 30, 2005 is as follows:
(In millions) |
|
Year Ended June 30 |
Amount |
|
2006 |
$123 |
2007 |
99 |
2008 |
81 |
2009 |
50 |
2010 |
39 |
Total |
$392 |
|
|