NOTE 9    INTANGIBLE ASSETS

The components of finite-lived intangible assets are as follows:

During fiscal 2004, we recorded additions to intangible assets of $355 million, of which $266 million was related to a comprehensive intellectual property license that we received in conjunction with the settlement of InterTrust v. Microsoft. No other material intangibles were acquired in fiscal 2004. During fiscal 2003, we recorded additions to intangible assets of $306 million, primarily related to the acquisition of Navision a/s and Rare Ltd., as described at Note 15 - Acquisitions. The components of intangible assets acquired during fiscal 2003 and 2004 are as follows - no significant residual value is estimated for these assets:

During 2003, research and development assets of $17 million were acquired and 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.

Acquired finite-lived intangibles are generally amortized on a straight line basis over weighted average periods. Intangible assets amortization expense was $161 million for fiscal 2003 and $170 million for fiscal 2004. The estimated future amortization expense related to intangible assets as of June 30, 2004 is as follows: