v2.4.0.6
Goodwill and Other Intangible Assets
9 Months Ended
Mar. 30, 2012
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

6.  Goodwill and Other Intangible Assets

 

The changes in the carrying amount of goodwill for the nine months ended March 30, 2012, are as follows:

 

(Dollars in millions)

 

 

 

Balance as of July 1, 2011

 

$

31

 

Goodwill acquired (1)

 

433

 

Balance as of March 30, 2012

 

$

464

 

 

 

(1) During the three months ended March 30, 2012, the Company recorded adjustments that resulted in a net decrease in goodwill acquired of $4 million. For further information on these adjustments, see “Note 5. Acquisitions.”

 

The carrying value of other intangible assets subject to amortization as of March 30, 2012, is set forth in the following table:

 

(Dollars in millions)

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

Weighted Average
Remaining Useful Life

 

 

 

 

 

 

 

 

 

 

 

Existing technology

 

$

137

 

$

(19

)

$

118

 

1.7 years

 

Customer relationships

 

399

 

(20

)

379

 

5.5 years

 

Total amortizable other intangible assets

 

$

536

 

$

(39

)

$

497

 

4.6 years

 

 

 

 

 

The carrying value of other intangible assets subject to amortization as of July 1, 2011 is set forth in the following table:

 

(Dollars in millions)

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

Weighted Average
Remaining Useful Life

 

Customer relationships

 

$

3

 

$

(2

)

$

1

 

0.5 year

 

 

The carrying value of In-process research and development was $44 million and $0 as of March 30, 2012 and July 1, 2011, respectively.

 

For the three and nine months ended March 30, 2012, amortization expense of other intangible assets was $35 million and $40 million, respectively. For the three and nine months ended April 1, 2011, amortization expense of other intangible assets was $1 million and $6 million, respectively. As of March 30, 2012, expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows:

 

(Dollars in millions)

 

 

 

 

 

 

 

Remainder of 2012

 

$

35

 

2013

 

139

 

2014

 

102

 

2015

 

70

 

2016

 

64

 

Thereafter

 

87

 

 

 

$

497