Goodwill And Purchased Intangible Assets


4.	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 26, 2013 (in millions):



	Balance at July 27, 2013		Acquisitions		Other			Balance at October 26, 2013
Americas	$	13,800	$	1,012	$	—		$	14,812
EMEA	5,037		575		(1		)	5,611
APJC	3,082		299		—			3,381
Total	$	21,919	$	1,886	$	(1	)	$	23,804


(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 26, 2013 (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
Sourcefire, Inc.	7.0	$	400	5.0	$	129	3.0	$	26	$	22	$	577
Composite Software, Inc.	6.0	60		3.9	14		0.0	—		1		75
Total		$	460		$	143		$	26	$	23	$	652

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



October 26, 2013	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	4,034	$	(1,529	)	$	2,505
Customer relationships	1,698		(516		)	1,182
Other	55		(11		)	44
Total purchased intangible assets with finite lives	5,787		(2,056		)	3,731
In-process research and development, with indefinite lives	104		—			104
Total	$	5,891	$	(2,056	)	$	3,835



July 27, 2013	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	3,563	$	(1,366	)	$	2,197
Customer relationships	1,566		(466		)	1,100
Other	30		(10		)	20
Total purchased intangible assets with finite lives	5,159		(1,842		)	3,317
In-process research and development, with indefinite lives	86		—			86
Total	$	5,245	$	(1,842	)	$	3,403

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 26, 2013		October 27, 2012
Amortization of purchased intangible assets:
Cost of sales	$	174	$	143
Operating expenses	65		122
Total	$	239	$	265

There were no impairment charges related to purchased intangible assets during the periods presented.

The estimated future amortization expense of purchased intangible assets with finite lives as of October 26, 2013 is as follows (in millions):



Fiscal Year	Amount
2014 (remaining nine months)	$	764
2015	934
2016	704
2017	530
2018	380
Thereafter	419
Total	$	3,731

- 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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