Accounting Policies
Stock Split
Accounting Changes
Unearned Revenue
Cash and Short-Term Investments
Inventories
Property and Equipment
Equity and Other Investments
Goodwill
Intangible Assets
Derivatives
Investment Income/(Loss)
Income Taxes
Stockholders' Equity
Other Comprehensive Income
Employee Stock and Savings Plans
Earnings Per Share
Acquisitions
Commitments and Guarantees
Contingencies
Segment Information
Note 10-Intangible Assets
During fiscal 2003, we recorded
additions of $306 million in intangible assets, primarily related to the
acquisition of Navision a/s and Rare, Ltd., with $19 million allocated to
marketing related assets, $97 million to technology-based assets,
$162 million to contract based assets, and $28 million to customer-related
assets. Acquired intangibles are amortized over weighted average periods of
five years for contract-based assets, four years for technology-based assets,
four years for marketing-related assets, and nine years for customer-related
assets. No significant residual value is estimated for these assets. Through
the fiscal year 2003 acquisitions, $17 million was assigned to research and
development assets that were written off in accordance with FASB Interpretation
No. 4 (FIN 4), Applicability of FASB Statement No. 2 to Business
Combinations Accounted for by the Purchase Method. Those write-offs are
included in Research and Development expenses. During fiscal 2002, changes in
intangible assets primarily related to our acquisition of $25 million in
contracts and $27 million in technology, which will be amortized over
approximately three years. No significant residual value is estimated for these
intangible assets. Intangible assets amortization expense was $194 million for
fiscal 2002 and $161 million for fiscal 2003. The components of intangible
assets were as follows:
(In millions) |
Gross
Carrying
Amount |
|
Accumulated
Amortization |
|
Gross
Carrying
Amount |
|
Accumulated
Amortization |
June 30 |
2002 |
|
2003 |
|
Contract-based |
$
421 |
|
$
(290) |
|
$
584 |
|
$
(376) |
Technology-based |
172 |
|
(71) |
|
261 |
|
(137) |
Marketing-related |
15 |
|
(4) |
|
34 |
|
(9) |
Customer-related |
- |
|
- |
|
28 |
|
(1) |
Total Intangible Assets |
$ 608 |
|
$
(365) |
|
$
907 |
|
$
(523) |
|