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58 Cisco Systems, Inc.
Notes to Consolidated Financial Statements
During the year ended July 29, 2006, the Company recorded an impairment charge of $69 million from a write down of purchased
intangible assets related to certain technology and customer relationships due to a reduction in expected future cash flows, and the
amount was recorded as amortization of purchased intangible assets.
The estimated future amortization expense of purchased intangible assets as of July 28, 2007, is as follows (in millions):
Fiscal Year Amount
2008 $ 670
2009 584
2010 471
2011 382
2012 248
Thereafter 185
Total $ 2,540
Goodwill
The following tables present the changes in goodwill allocated to the Company’s reportable segments during fiscal 2007 and 2006
(in millions):
Fiscal 2007
Balance at
July 29, 2006
Acquisition of
WebEx
Other
Acquisitions Other
Balance at
July 28, 2007
United States and Canada $ 6,778 $ 1,840 $ 480 $ (81) $ 9,017
European Markets 1,127 176 191 31 1,525
Emerging Markets 292 — 71 (2) 361
Asia Pacific 277 65 78 — 420
Japan 753 17 28 — 798
Total $ 9,227 $ 2,098 $ 848 $ (52) $ 12,121
Fiscal 2006
Balance at
July 30, 2005
Acquisition of
Scientific-Atlanta
Other
Acquisitions Other
Balance at
July 29, 2006
United States and Canada $ 3,304 $ 3,396 $ 120 $ (42) $ 6,778
European Markets 744 338 28 17 1,127
Emerging Markets 253 28 11 — 292
Asia Pacific 266 — 11 — 277
Japan 728 — 25 — 753
Total $ 5,295 $ 3,762 $ 195 $ (25) $ 9,227
In the table above, “Other” includes purchase accounting adjustments and currency translation and “Other Acquisitions” includes $22 million
of goodwill recorded as part of the Company’s purchase of the remaining portion of the minority interest of Cisco Systems, K.K. (Japan)
during fiscal 2006.