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NOTES TO FINANCIAL STATEMENTS |
|
NOTE 9 INTANGIBLE ASSETS
The components of finite-lived intangible assets are as follows:
| (In millions) |
 |
| June 30 |
2006 |
|
2005 |
| |
Gross
carrying
amount |
 |
Accumulated
amortization |
 |
Net carrying
amount |
 |
Gross
carrying
amount |
 |
Accumulated
amortization |
 |
Net carrying
amount |
 |
| Contract-based |
$0,954 |
|
$(661) |
|
$292 |
|
$0,957 |
|
$(606) |
|
$351 |
| Technology-based |
458 |
|
(255) |
|
203 |
|
309 |
|
(200) |
|
109 |
| Marketing-related |
42 |
|
(32) |
|
10 |
|
35 |
|
(25) |
|
10 |
| Customer-related |
54 |
|
(21) |
|
33 |
|
40 |
|
(11) |
|
29 |
| Total |
$1,508 |
|
$(969) |
|
$539 |
|
$1,341 |
|
$(842) |
|
$499 |
During fiscal year 2006 and 2005, we recorded additions to intangible assets of $189 million and $90 million, respectively. We estimate that we have no significant residual value related to our intangible assets. The components of finite-lived intangible assets acquired during fiscal years 2006 and 2005 were as follows:
| (In millions) |
 |
| Year Ended June 30 |
2006 |
|
2005 |
| |
Amount |
 |
Weighted
average life |
 |
Amount |
 |
Weighted
average life |
| |
| Contract-based |
$ 36 |
|
4 years |
|
$ 16 |
|
6 years |
| Technology-based |
140 |
|
4 years |
|
64 |
|
5 years |
| Marketing-related |
5 |
|
3 years |
|
– |
|
– |
| Customer-related |
8 |
|
4 years |
|
10 |
|
5 years |
| Total |
$ 189 |
|
|
|
$ 90 |
|
|
Acquired intangibles are generally amortized on a straight-line basis over weighted average periods. Intangible assets amortization expense was $127 million for fiscal year 2006, $161 million for fiscal year 2005, and $170 million for fiscal year 2004. The estimated future amortization expense related to intangible assets as of June 30, 2006 is as follows:
| (In millions) |
 |
| Year Ended June 30 |
Amount |
 |
| 2007 |
$ 150 |
| 2008 |
126 |
| 2009 |
83 |
| 2010 |
60 |
| 2011 |
46 |
| Total |
$ 465 |
|
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