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2008 Annual Report 61
Notes to Consolidated Financial Statements
The following tables present details of the Company’s purchased intangible assets (in millions):
Gross
Accumulated
Amortization NetJuly 26, 2008
Technology(1) $ 1,785 $ (905) $ 880
Customer relationships 1,821 (674) 1,147
Other 247 (185) 62
Total $ 3,853 $ (1,764) $ 2,089
Gross
Accumulated
Amortization NetJuly 28, 2007
Technology $ 1,546 $ (505) $ 1,041
Customer relationships 1,812 (421) 1,391
Other 238 (130) 108
Total $ 3,596 $ (1,056) $ 2,540
(1) The technology category for the year ended July 26, 2008 includes technology intangible assets acquired through business combinations as well as technology
licenses.
The following table presents the amortization of purchased intangible assets (in millions):
Years Ended July 26, 2008 July 28, 2007 July 29, 2006
Amortization of purchased intangible assets
Cost of sales $ 233 $ 156 $ 60
Operating expenses 499 407 393
Total $ 732 $ 563 $ 453
During the years ended July 26, 2008 and July 29, 2006, the Company recorded impairment charges of $33 million and $69 million,
respectively, from write-downs of purchased intangible assets primarily related to certain technology and customer relationships due
to reductions in expected future cash flows, and the amounts were recorded as amortization of purchased intangible assets.
The estimated future amortization expense of purchased intangible assets as of July 26, 2008, is as follows (in millions):
Fiscal Year Amount
2009 $ 644
2010 516
2011 426
2012 290
2013 209
Thereafter 4
Total $ 2,089