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60 Cisco Systems, Inc.
Notes to Consolidated Financial Statements
4. Goodwill and Purchased Intangible Assets
(a) Goodwill
The following tables present the changes in goodwill allocated to the Company’s reportable segments during fiscal 2008 and 2007 (in millions):
Balance at
July 28, 2007 Acquisitions Other
Balance at
July 26, 2008
United States and Canada $ 9,017 $ 86 $ (44) $ 9,059
European Markets 1,525 75 50 1,650
Emerging Markets 361 44 — 405
Asia Pacific 420 59 — 479
Japan 798 1 — 799
Total $ 12,121 $ 265 $ 6 $ 12,392
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
In the table above, “Other” primarily includes foreign currency translation and purchase accounting adjustments.
(b) Purchased Intangible Assets
The following tables present details of the purchased intangible assets acquired through acquisitions during fiscal 2008 and 2007
(in millions, except years):
TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER TOTA L
Weighted-
Average Useful
Life (in Years) Amount
Weighted-
Average Useful
Life (in Years) Amount
Weighted-
Average Useful
Life (in Years) Amount AmountFiscal 2008
Navini Networks, Inc. 5.0 $ 95 4.0 $ 6 1.2 $ 7 $ 108
Securent, Inc. 5.0 20 4.0 3 3.6 1 24
Other 4.3 14 — — — — 14
Total $ 129 $ 9 $ 8 $ 146
TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER TOTA L
Weighted-
Average Useful
Life (in Years) Amount
Weighted-
Average Useful
Life (in Years) Amount
Weighted-
Average Useful
Life (in Years) Amount AmountFiscal 2007
Arroyo Video Solutions, Inc. 5.0 $ 14 7.0 $ 11 — $ — $ 25
IronPort Systems, Inc. 4.0 127 6.0 101 3.1 3 231
Reactivity, Inc. 6.0 36 5.0 3 — — 39
WebEx Communications, Inc. 4.0 310 6.0 152 4.8 79 541
Other 4.7 76 4.7 13 2.4 1 90
Total $ 563 $ 280 $ 83 $ 926