This excerpt taken from the VRGY 10-K filed Dec 22, 2006.
Goodwill and purchased intangible assets. We adopted SFAS No. 142 Goodwill and Other Intangible Assets (SFAS No. 142) on November 1, 2002 and recorded an allocation of goodwill from Agilent. Goodwill is not amortized but is reviewed annually (or more frequently if impairment indicators arise) for impairment. Impairment indicators include the significant decrease in market price of an asset, significant adverse changes in the extent or use or physical condition of an asset, significant adverse change in legal or regulatory factors affecting an asset, accumulation of costs significantly in excess of expected costs to acquire or construct an asset, operating or cash flow losses (or projections of losses) that demonstrates continuing losses associated with the use of an asset, or a current expectation that is more likely than not, that an asset will be sold or disposed of significantly before the end of its previously estimated useful life. Purchased intangible assets are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the economic lives of the respective assets, generally three to five years.
The process of evaluating the potential impairment of goodwill and other intangibles is highly subjective and requires significant judgment. We estimate expected future cash flows then compare the carrying value including goodwill and other intangibles to the discounted future cash flows. If the total of future cash flows is less than the carrying amount of the assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Estimates of the future cash flows associated with the assets are critical to these assessments. Changes in these estimates based on changed economic conditions or business strategies could result in material impairment charges in future periods.
This excerpt taken from the VRGY 10-Q filed Sep 7, 2006.
12. GOODWILL AND PURCHASED INTANGIBLE ASSETS
A summary of our goodwill activity for the nine months ended July 31, 2006 and 2005 is shown in the table below:
This excerpt taken from the VRGY 10-Q filed Jul 14, 2006.
8. GOODWILL AND PURCHASED INTANGIBLE ASSETS
The goodwill balance as of April 30, 2006 was $18 million and as of October 31, 2005 was $17 million.
Other intangible assets were all classified as purchased intangibles and are included in other assets in the condensed combined balance sheets. The gross carrying amounts and net book values as of April 30, 2006 and October 31, 2005 are shown in the table below:
Amortization of intangible assets for the six months ended April 30, 2006 was insignificant and we had no amortization of intangible assets for the six months ended April 30, 2005.