Cisco 2009 Annual Report Download - page 53

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Notes to Consolidated Financial Statements
The following tables present details of the Company’s purchased intangible assets (in millions):
Gross
Accumulated
Amortization NetJuly 25, 2009
Technology(1) $ 1,469 $ (803) $ 666
Customer relationships 1,730 (768) 962
Other 184 (110) 74
Total $ 3,383 $ (1,681) $ 1,702
July 26, 2008 Gross
Accumulated
Amortization Net
Technology(1) $ 1,785 $ (905) $ 880
Customer relationships 1,821 (674) 1,147
Other 247 (185) 62
Total $ 3,853 $ (1,764) $ 2,089
(1) The technology category includes technology intangible assets acquired through business combinations as well as through technology licenses.
The following table presents the amortization of purchased intangible assets (in millions):
Years Ended July 25, 2009 July 26, 2008 July 28, 2007
Amortization of purchased intangible assets:
Cost of sales $ 211 $ 233 $ 156
Operating expenses 533 499 407
Total $ 744 $ 732 $ 563
During the years ended July 25, 2009 and July 26, 2008, the Company recorded impairment charges of $95 million and $33 million,
respectively, from write-downs of purchased intangible assets related to certain technologies and customer relationships due to
reductions in expected future cash flows, and the amounts were recorded as amortization of purchased intangible assets. There were no
impairment charges related to purchased intangible assets for the year ended July 28, 2007.
The estimated future amortization expense of purchased intangible assets as of July 25, 2009, is as follows (in millions):
Fiscal Year Amount
2010 $ 557
2011 472
2012 357
2013 247
2014 59
Thereafter 10
Total $ 1,702
2009 Annual Report 51