ADT 2014 Annual Report Download - page 145

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FORM 10-K
3. Property and Equipment
Property and equipment consisted of the following ($ in millions):
September 26,
2014
September 27,
2013
Land ............................................. $ 9 $ 9
Buildings and leasehold improvements .................. 101 80
Machinery and equipment ............................ 392 389
Property under capital leases .......................... 45 41
Construction in progress ............................. 15 29
Accumulated depreciation ............................ (297) (313)
Property and equipment, net ...................... $265 $235
4. Goodwill and Other Intangible Assets
Goodwill
On the first day of the fiscal fourth quarter of 2014, the Company performed a qualitative impairment
assessment for goodwill and concluded that it is not more likely than not that the fair value of the reporting unit
is less than its carrying amount and therefore goodwill was not impaired. Additionally, there were no goodwill
impairments as a result of performing the Company’s annual impairment tests for fiscal years 2013 and 2012.
The changes in the carrying amount of goodwill for the years ended September 26, 2014 and September 27,
2013 are as follows ($ in millions):
Balance as of September 27, 2013 ............................... $3,476
Acquisitions ................................................ 296
Currency translation and other .................................. (34)
Balance as of September 26, 2014 ............................... $3,738
Balance as of September 28, 2012 ............................... $3,400
Acquisitions ................................................ 80
Currency translation and other .................................. (4)
Balance as of September 27, 2013 ............................... $3,476
Other Intangible Assets
The following table sets forth the gross carrying amounts and accumulated amortization of the Company’s
other intangible assets as of September 26, 2014 and September 27, 2013 ($ in millions):
September 26, 2014 September 27, 2013
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Amortizable:
Contracts and related customer
relationships ............... $8,098 $(5,022) $7,697 $(4,780)
Other ...................... 51 (7) 13 (8)
Total ................... $8,149 $(5,029) $7,710 $(4,788)
79