AAPL » Topics » Goodwill and Other Intangible Assets

This excerpt taken from the AAPL 10-K filed Jan 25, 2010.

Note 6 – Goodwill and Other Intangible Assets

The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from one to ten years. The following table summarizes the components of gross and net intangible asset balances as of September 26, 2009 and September 27, 2008 (in millions):

 

     2009    2008
     Gross
Carrying
Amount
   Accumulated
Amortization
    Net
Carrying
Amount
   Gross
Carrying
Amount
   Accumulated
Amortization
    Net
Carrying
Amount

Definite lived and amortizable acquired technology

   $ 323    $ (176   $ 147    $ 308    $ (123   $ 185

Indefinite lived and unamortizable trademarks

     100      —          100      100      —          100
                                           

Total acquired intangible assets

   $ 423    $ (176   $ 247    $ 408    $ (123   $ 285
                                           

Goodwill

   $ 206    $ —        $ 206    $ 207    $ —        $ 207
                                           

In 2008, the Company completed an acquisition of a business for total cash consideration, net of cash acquired, of $220 million, of which $169 million has been allocated to goodwill, $51 million to deferred tax assets and $7 million to acquired intangible assets.

The Company’s goodwill is allocated primarily to the America’s reportable operating segment. Amortization expense related to acquired intangible assets was $53 million, $46 million and $35 million in 2009, 2008 and 2007, respectively. As of September 26, 2009 and September 27, 2008, the remaining weighted-average amortization period for acquired technology was 7.2 years and 7.0 years, respectively.

Expected annual amortization expense related to acquired technology as of September 26, 2009, is as follows (in millions):

 

Years

    

2010

   $ 40

2011

     37

2012

     28

2013

     13

2014

     10

Thereafter

     19
      

Total

   $ 147
      

 

47


Table of Contents
This excerpt taken from the AAPL 10-K filed Oct 27, 2009.

Note 5 – Goodwill and Other Intangible Assets

The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from one to ten years. The following table summarizes the components of gross and net intangible asset balances as of September 26, 2009 and September 27, 2008 (in millions):

 

     2009    2008
     Gross
Carrying
Amount
   Accumulated
Amortization
    Net
Carrying
Amount
   Gross
Carrying
Amount
   Accumulated
Amortization
    Net
Carrying
Amount

Definite lived and amortizable acquired technology

   $  323    $ (176   $  147    $  308    $ (123   $  185

Indefinite lived and unamortizable trademarks

     100      —          100      100      —          100
                                           

Total acquired intangible assets

   $ 423    $ (176   $ 247    $ 408    $ (123   $ 285
                                           

Goodwill

   $ 206    $ —        $ 206    $ 207    $ —        $ 207
                                           

In 2008, the Company completed an acquisition of a business for total cash consideration, net of cash acquired, of $220 million, of which $169 million has been allocated to goodwill, $51 million to deferred tax assets and $7 million to acquired intangible assets.

 

74


Table of Contents

The Company’s goodwill is allocated primarily to the America’s reportable operating segment. Amortization expense related to acquired intangible assets was $53 million, $46 million and $35 million in 2009, 2008 and 2007, respectively. As of September 26, 2009 and September 27, 2008, the remaining weighted-average amortization period for acquired technology was 7.2 years and 7.0 years, respectively.

Expected annual amortization expense related to acquired technology as of September 26, 2009, is as follows (in millions):

 

Years

    

2010

   $ 40

2011

     37

2012

     28

2013

     13

2014

     10

Thereafter

     19
      

Total

   $ 147
      
These excerpts taken from the AAPL 10-K filed Nov 5, 2008.

Note 4—Goodwill and Other Intangible Assets

The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 1 to 10 years. The following table summarizes the components of gross and net intangible asset balances as of September 27, 2008 and September 29, 2007 (in millions):

 

     2008    2007
     Gross
Carrying
Amount
   Accumulated
Amortization
    Net
Carrying
Amount
   Gross
Carrying
Amount
   Accumulated
Amortization
    Net
Carrying
Amount

Definite lived and amortizable acquired technology

   $ 308    $   (123 )   $ 185    $ 276    $ (77 )   $ 199

Indefinite lived and unamortizable trademarks

     100            100      100            100
                                           

Total acquired intangible assets

   $ 408    $ (123 )   $ 285    $   376    $   (77 )   $   299
                                           

Goodwill

   $   207    $     $   207    $ 38    $     $ 38
                                           

In June 2008, the Company completed an acquisition of a business for total cash consideration, net of cash acquired, of $220 million, of which $169 million has been allocated to goodwill, $51 million to deferred tax assets and $7 million to acquired intangible assets.

The Company’s goodwill is allocated primarily to the America’s reportable operating segment. Amortization expense related to acquired intangible assets was $46 million, $35 million, and $12 million in 2008, 2007, and 2006, respectively. As of September 27, 2008, and September 29, 2007, the remaining weighted-average amortization period for acquired technology was 7.0 years and 7.1 years, respectively.

Expected annual amortization expense related to acquired technology as of September 27, 2008, is as follows (in millions):

 

Fiscal Years

  

2009

   $ 50

2010

     35

2011

     32

2012

     26

2013

     13

Thereafter

     29
      

Total

   $   185
      

 

70


Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4—Goodwill and Other Intangible Assets

STYLE="margin-top:6px;margin-bottom:0px">The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 1 to 10 years. The following table summarizes the
components of gross and net intangible asset balances as of September 27, 2008 and September 29, 2007 (in millions):

 










































































































































































































   2008  2007
   Gross
Carrying
Amount
  Accumulated
Amortization
  Net
Carrying
Amount
  Gross
Carrying
Amount
  Accumulated
Amortization
  Net
Carrying
Amount

Definite lived and amortizable acquired technology

  $308  $  (123) $185  $276  $(77) $199

Indefinite lived and unamortizable trademarks

   100      100   100      100
                        

Total acquired intangible assets

  $408  $(123) $285  $  376  $  (77) $  299
                        

Goodwill

  $  207  $  $  207  $38  $  $38
                        

In June 2008, the Company completed an acquisition of a business for total cash consideration, net of cash
acquired, of $220 million, of which $169 million has been allocated to goodwill, $51 million to deferred tax assets and $7 million to acquired intangible assets.

SIZE="2">The Company’s goodwill is allocated primarily to the America’s reportable operating segment. Amortization expense related to acquired intangible assets was $46 million, $35 million, and $12 million in 2008, 2007, and 2006,
respectively. As of September 27, 2008, and September 29, 2007, the remaining weighted-average amortization period for acquired technology was 7.0 years and 7.1 years, respectively.

STYLE="margin-top:6px;margin-bottom:0px">Expected annual amortization expense related to acquired technology as of September 27, 2008, is as follows (in millions):

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 



























































Fiscal Years

  

2009

  $50

2010

   35

2011

   32

2012

   26

2013

   13

Thereafter

   29
    

Total

  $  185
    

 


70







Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



These excerpts taken from the AAPL 10-K filed Nov 15, 2007.

Note 4—Goodwill and Other Intangible Assets

The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 2 to 10 years. The following table summarizes the components of gross and net intangible asset balances (in millions):

 
  September 29, 2007
  September 30, 2006
 
  Gross
Carrying
Amount

  Accumulated
Amortization

  Net
Carrying
Amount

  Gross
Carrying
Amount

  Accumulated
Amortization

  Net
Carrying
Amount

Definite lived and amortizable acquired technology   $ 276   $ (77 ) $ 199   $ 181   $ (42 ) $ 139
Indefinite lived and unamortizable trademarks     100         100            
   
 
 
 
 
 
Total acquired intangible assets   $ 376   $ (77 ) $ 299   $ 181   $ (42 ) $ 139
   
 
 
 
 
 
Goodwill   $ 38   $   $ 38   $ 38   $   $ 38
   
 
 
 
 
 

As of September 29, 2007, and September 30, 2006, the weighted-average amortization period for acquired technology was 7.1 years and 8.5 years, respectively.

During 2006, the Company sold certain assets related to its PowerSchool web-based student information system operations. In connection with this sale, the Company reduced goodwill by $31 million for the outstanding balance from the acquisition of PowerSchool, Inc. in 2001 and recognized a $4 million pre-tax gain, which is reflected in other income and expense in the Consolidated Statement of Operations.

Expected annual amortization expense related to acquired technology is as follows (in millions):

Fiscal Years:
     
  2008   $ 52
  2009     37
  2010     28
  2011     25
  2012     19
  Thereafter     38
   
Total   $ 199
   

Amortization expense related to acquired intangible assets was $35 million, $12 million, and $9 million in 2007, 2006, and 2005, respectively.

73


Note 4—Goodwill and Other Intangible Assets



The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 2 to 10 years. The following table summarizes the
components of gross and net intangible asset balances (in millions):




























































































































































 
 September 29, 2007
 September 30, 2006
 
 Gross

Carrying

Amount

 Accumulated

Amortization

 Net

Carrying

Amount

 Gross

Carrying

Amount

 Accumulated

Amortization

 Net

Carrying

Amount

Definite lived and amortizable acquired technology $276 $(77)$199 $181 $(42)$139
Indefinite lived and unamortizable trademarks  100    100      
  
 
 
 
 
 
Total acquired intangible assets $376 $(77)$299 $181 $(42)$139
  
 
 
 
 
 
Goodwill $38 $ $38 $38 $ $38
  
 
 
 
 
 




As
of September 29, 2007, and September 30, 2006, the weighted-average amortization period for acquired technology was 7.1 years and 8.5 years, respectively.



During
2006, the Company sold certain assets related to its PowerSchool web-based student information system operations. In connection with this sale, the Company reduced goodwill by
$31 million for the outstanding balance from the acquisition of PowerSchool, Inc. in 2001 and recognized a $4 million pre-tax gain, which is reflected in other income
and expense in the Consolidated Statement of Operations.



Expected
annual amortization expense related to acquired technology is as follows (in millions):





































































Fiscal Years:
   
 2008 $52
 2009  37
 2010  28
 2011  25
 2012  19
 Thereafter  38
  
Total $199
  




Amortization
expense related to acquired intangible assets was $35 million, $12 million, and $9 million in 2007, 2006, and 2005, respectively.



73









NAME="page_fo19701_1_74">



Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki