Goodwill And Purchased Intangible Assets

9 Months Ended

Apr. 26, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

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 nine months ended April 26, 2014 (in millions):



	Balance at July 27, 2013		Acquisitions		Other			Balance at April 26, 2014
Americas	$	13,800	$	1,198	$	(12	)	$	14,986
EMEA	5,037		638		(3		)	5,672
APJC	3,082		336		—			3,418
Total	$	21,919	$	2,172	$	(15	)	$	24,076


(b)	Purchased Intangible Assets

The following table presents details of the Company’s intangible assets acquired through business combinations completed during the nine months ended April 26, 2014 (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
Composite Software, Inc.	6.0	$	60	3.9	$	14	0.0	$	—	$	1	$	75
Sourcefire, Inc.	7.0	400		5.0	129		3.0	26		22		577
WhipTail Technologies, Inc.	5.0	63		5.0	1		2.7	3		38		105
All other acquisitions	3.0	6		0.0	—		0.0	—		—		6
Total		$	529		$	144		$	29	$	61	$	763

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



April 26, 2014	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	4,117	$	(1,885	)	$	2,232
Customer relationships	1,698		(653		)	1,045
Other	56		(16		)	40
Total purchased intangible assets with finite lives	5,871		(2,554		)	3,317
In-process research and development, with indefinite lives	144		—			144
Total	$	6,015	$	(2,554	)	$	3,461



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				Nine Months Ended
	April 26, 2014		April 27, 2013		April 26, 2014		April 27, 2013
Amortization of purchased intangible assets:
Cost of sales	$	190	$	156	$	553	$	444
Operating expenses	71		89		207		329
Total	$	261	$	245	$	760	$	773

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 April 26, 2014 is as follows (in millions):



Fiscal Year	Amount
2014 (remaining three months)	$	259
2015	959
2016	726
2017	550
2018	398
Thereafter	425
Total	$	3,317

- 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+ Details