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Goodwill and Purchased Intangible Assets | 12 Months Ended
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Jul. 28, 2012
Goodwill and Purchased Intangible Assets | 4. Goodwill and Purchased Intangible Assets (a) Goodwill Beginning in fiscal 2012, the Company’s reportable segments were changed to the following segments: the Americas, EMEA, and APJC. As a result, the Company reallocated the goodwill at July 30, 2011 to these reportable segments. The following table presents the goodwill allocated to the Company’s reportable segments as of July 28, 2012 and July 30, 2011, as well as the changes to goodwill during fiscal 2012 and 2011 (in millions):
|  | Balance at July 30, 2011 |  |  | Acquisitions |  |  | Other |  |  | Balance at July 28, 2012 |
Americas |  | $ | 11,627 |  |  | $ | 136 |  |  | $ | (8 | ) |  | $ | 11,755 |
EMEA |  |  | 3,272 |  |  |  | 64 |  |  |  | (49 | ) |  |  | 3,287 |
APJC |  |  | 1,919 |  |  |  | 37 |  |  |  | — |  |  |  | 1,956 |
Total |  | $ | 16,818 |  |  | $ | 237 |  |  | $ | (57 | ) |  | $ | 16,998 |
|  | Balance at July 31, 2010 |  |  | Acquisitions |  |  | Other |  |  | Balance at July 30, 2011 |
Americas |  | $ | 11,571 |  |  | $ | 122 |  |  | $ | (66 | ) |  | $ | 11,627 |
EMEA |  |  | 3,209 |  |  |  | 38 |  |  |  | 25 |  |  |  | 3,272 |
APJC |  |  | 1,894 |  |  |  | 24 |  |  |  | 1 |  |  |  | 1,919 |
Total |  | $ | 16,674 |  |  | $ | 184 |  |  | $ | (40 | ) |  | $ | 16,818 |
In the preceding table, the column entitled “Other” primarily includes foreign currency translation and purchase accounting adjustments. In fiscal 2011, “Other” also includes a goodwill reduction of $63 million related to the sale of the Company’s manufacturing operations in Juarez, Mexico and an adjustment related to a divestiture. The goodwill reductions were included in restructuring and other charges. See Note 5. (b) Purchased Intangible Assets The following tables present details of the Company’s intangible assets acquired through business combinations completed during fiscal 2012 and 2011 (in millions, except years):
|  | FINITE LIVES |  |  | INDEFINITE LIVES |  |  | TOTAL |
|  | TECHNOLOGY |  |  | CUSTOMER RELATIONSHIPS |  |  | OTHER |  |  | IPR&D |  |
Fiscal 2012 |  | Weighted- Average Useful Life (in Years) |  |  | Amount |  |  | Weighted- Average Useful Life (in Years) |  |  | Amount |  |  | Weighted- Average Useful Life (in Years) |  |  | Amount |  |  | Amount |  |  | Amount |
Lightwire, Inc. |  |  | 5.0 |  |  | $ | 97 |  |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | 97 |
All others |  |  | 3.5 |  |  |  | 102 |  |  |  | 3.0 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 103 |
Total |  |  |  |  |  | $ | 199 |  |  |  |  |  |  | $ | 1 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 200 |
|  | FINITE LIVES |  |  | INDEFINITE LIVES |  |  | TOTAL |
|  | TECHNOLOGY |  |  | CUSTOMER RELATIONSHIPS |  |  | OTHER |  |  | IPR&D |  |
Fiscal 2011 |  | Weighted- Average Useful Life (in Years) |  |  | Amount |  |  | Weighted- Average Useful Life (in Years) |  |  | Amount |  |  | Weighted- Average Useful Life (in Years) |  |  | Amount |  |  | Amount |  |  | Amount |
Total |  |  | 4.8 |  |  | $ | 92 |  |  |  | 6.4 |  |  | $ | 16 |  |  |  | 2.5 |  |  | $ | 1 |  |  | $ | 5 |  |  | $ | 114 |
The following tables present details of the Company’s purchased intangible assets (in millions):
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 |
July 30, 2011 |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Purchased intangible assets with finite lives: |  |  |  |  |  |  |  |  |  |  |  |
Technology |  | $ | 1,961 |  |  | $ | (561 | ) |  | $ | 1,400 |
Customer relationships |  |  | 2,277 |  |  |  | (1,346 | ) |  |  | 931 |
Other |  |  | 123 |  |  |  | (91 | ) |  |  | 32 |
Total purchased intangible assets with finite lives |  |  | 4,361 |  |  |  | (1,998 | ) |  |  | 2,363 |
IPR&D, with indefinite lives |  |  | 178 |  |  |  | — |  |  |  | 178 |
Total |  | $ | 4,539 |  |  | $ | (1,998 | ) |  | $ | 2,541 |
Purchased intangible assets include intangible assets acquired through business combinations as well as through direct purchases or licenses. All IPR&D projects outstanding at the end of fiscal 2011 were completed during fiscal 2012 and reclassified to technology purchased intangible assets with finite lives. The following table presents the amortization of purchased intangible assets (in millions):
Years Ended |  | July 28, 2012 |  |  | July 30, 2011 |  |  | July 31, 2010 |
Amortization of purchased intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  | $ | 424 |  |  | $ | 492 |  |  | $ | 277 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of purchased intangible assets |  |  | 383 |  |  |  | 520 |  |  |  | 491 |
Restructuring and other charges |  |  | — |  |  |  | 8 |  |  |  | — |
Total |  | $ | 807 |  |  | $ | 1,020 |  |  | $ | 768 |
Amortization of purchased intangible assets for fiscal 2012, 2011, and 2010 included impairment charges of approximately $12 million, $164 million, and $28 million, respectively. The impairment charges of $12 million for fiscal 2012 were due to declines in estimated fair value resulting from reductions in expected future cash flows associated with certain of the Company’s technology assets. For fiscal 2011, the $164 million in impairment charges consisted of $64 million of charges to product cost of sales, $92 million of charges to amortization of purchased intangibles, and $8 million of charges to restructuring and other charges. These impairment charges were primarily due to declines in estimated fair value resulting from reductions in expected future cash flows associated with certain of the Company’s consumer products and were categorized as follows: $97 million in technology assets, $40 million in customer relationships, and $27 million in other purchased intangible assets. For fiscal 2010, the impairment charges were due to reductions in expected future cash flows related to certain of the Company’s technologies and customer relationships and were recorded as amortization of purchased intangible assets. The estimated future amortization expense of purchased intangible assets with finite lives as of July 28, 2012 is as follows (in millions):
Fiscal Year |  | Amount |
2013 |  | $ | 706 |
2014 |  |  | 523 |
2015 |  |  | 444 |
2016 |  |  | 217 |
2017 |  |  | 69 |
Total |  | $ | 1,959 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16323-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13854-109267 + Details
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