ADT 2007 Annual Report Download - page 215

TYCO INTERNATIONAL LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
11. Goodwill and Intangible Assets (Continued)
The changes in the carrying amount of goodwill from the reallocation in the third quarter of 2007
to September 28, 2007 was as follows ($ in millions):
Fire Electrical
ADT Protection Flow Safety and Metal Corporate
Worldwide Services Control Products Products and Other Total
Balance, as reallocated on March 31,
2007 ........................ $4,992 $1,474 $1,917 $2,058 $1,047 $60 $11,548
Less: goodwill impairment .......... 46 — — — — — 46
Balance at June 29, 2007 ........... 4,946 1,474 1,917 2,058 1,047 60 11,502
Purchase accounting adjustments ..... 4 (1) — 11 — — 14
Acquisitions ..................... 1 — — — — — 1
Currency translation ............... 74 22 58 13 7 — 174
Balance at September 28, 2007 ....... $5,025 $1,495 $1,975 $2,082 $1,054 $60 $11,691
Intangible assets, net were $2,697 million and $2,730 million at September 29, 2007 and
September 29, 2006, respectively. The following table sets forth the gross carrying amount and
accumulated amortization of the Company’s intangible assets at September 28, 2007 and September 29,
2006 ($ in millions):
September 28, 2007 September 29, 2006
Gross Weighted Average Gross Weighted Average
Carrying Accumulated Amortization Carrying Accumulated Amortization
Amount Amortization Period Amount Amortization Period
Amortizable:
Contracts and related
customer relationships .... $5,808 $3,565 14 years $5,251 $3,028 12 years
Intellectual property ....... 542 354 15 years 518 295 14 years
Other .................. 20 14 11 years 15 9 11 years
Total .................... $6,370 $3,933 14 years $5,784 $3,332 12 years
Non-Amortizable:
Intellectual property ....... $ 255 $ 264
Other .................. 5 14
Total .................... $ 260 $ 278
Intangible asset amortization expense for 2007, 2006 and 2005 was $513 million, $517 million and
$528 million, respectively. The estimated aggregate amortization expense on intangible assets currently
owned by the Company is expected to be approximately $450 million for 2008, $400 million for 2009,
$300 million for 2010, $250 million for 2011 and $200 million for 2012.
See Note 1 for discussion regarding changes in the estimated lives of dealer intangibles.
2007 Financials 123