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NOTES TO FINANCIAL STATEMENTS |
|
NOTE 9 INTANGIBLE ASSETS
The components of finite-lived intangible assets were as follows:
(In millions) |
June 30 |
2007 |
|
2006 |
|
Gross
carrying
amount |
 |
Accumulated
amortization |
 |
Net carrying
amount |
 |
Gross
carrying
amount |
 |
Accumulated
amortization |
 |
Net carrying
amount |
 |
Contract-based |
$0,988 |
|
$0,(727) |
|
$261 |
|
$0,954 |
|
$(661) |
|
$293 |
Technology-based |
916 |
|
(407) |
|
509 |
|
458 |
|
(255) |
|
203 |
Marketing-related |
57 |
|
(39) |
|
18 |
|
42 |
|
(32) |
|
10 |
Customer-related |
122 |
|
(32) |
|
90 |
|
54 |
|
(21) |
|
33 |
Total |
$2,083 |
|
$(1,205) |
|
$878 |
|
$1,508 |
|
$(969) |
|
$539 |
During fiscal year 2007 and 2006, we recorded additions to intangible assets of $473 million and $189 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 2007 and 2006 were as follows:
(In millions) |
Year Ended June 30 |
2007 |
|
2006 |
|
Amount |
 |
Weighted
average life |
 |
Amount |
 |
Weighted
average life |
 |
 |
 |
Contract-based |
$ ,57 |
|
5 years |
|
$ ,36 |
|
4 years |
Technology-based |
333 |
|
4 years |
|
140 |
|
4 years |
Marketing-related |
14 |
|
4 years |
|
5 |
|
3 years |
Customer-related |
69 |
|
5 years |
|
8 |
|
4 years |
Total |
$473 |
|
|
|
$189 |
|
|
Intangible asset additions include $170 million of technology-based intangible assets with a weighted-average life of 4 years, and $84 million of other intangible assets with a weighted-average life of 4.9 years, related to the acquisitions of Softricity Inc., TellMe Networks, Inc., and the remaining 11 entities acquired.
Acquired intangibles are generally amortized on a straight-line basis over weighted average lives. Intangible assets amortization expense was $236 million for fiscal year 2007, $127 million for fiscal year 2006, and $161 million for fiscal year 2005. The estimated future amortization expense related to intangible assets as of June 30, 2007 is as follows:
(In millions) |
|
Year Ended June 30 |
Amount |
 |
2008 |
$263 |
2009 |
229 |
2010 |
184 |
2011 |
111 |
2012 and thereafter |
91 |
Total |
$878 |
|
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