Cisco 2010 Annual Report Download - page 54

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Notes to Consolidated Financial Statements
The following tables present details of the Company’s purchased intangible assets (in millions):
July 31, 2010 Gross
Accumulated
Amortization Net
Purchased intangible assets with finite lives:
Technology $ 2,396 $ (686) $ 1,710
Customer relationships 2,326 (1,045) 1,281
Other 172 (85) 87
Total purchased intangible assets with finite lives 4,894 (1,816) 3,078
IPR&D, with indefinite lives 196 — 196
Total $ 5,090 $ (1,816) $ 3,274
July 25, 2009 Gross
Accumulated
Amortization Net
Purchased intangible assets with finite lives:
Technology $ 1,469 $ (803) $ 666
Customer relationships 1,730 (768) 962
Other 184 (110) 74
Total $ 3,383 $ (1,681) $ 1,702
Purchased intangible assets include intangible assets acquired through business combinations as well as through direct purchases
or licenses.
The following table presents the amortization of purchased intangible assets (in millions):
Years Ended July 31, 2010 July 25, 2009 July 26, 2008
Amortization of purchased intangible assets:
Cost of sales $ 277 $ 211 $ 233
Operating expenses 491 533 499
Total $ 768 $ 744 $ 732
The Company recorded impairment charges of $28 million, $95 million and $33 million during fiscal 2010, 2009 and 2008,
respectively, related to its purchased intangible assets. These impairment charges were due to reductions in expected future cash
flows related to certain technologies and customer relationships and were recorded as amortization of purchased intangible assets.
For purchased intangible assets with finite lives, the estimated future amortization expense as of July 31, 2010 is as follows (in
millions):
Fiscal Year Amount
2011 $ 836
2012 720
2013 603
2014 420
2015 317
Thereafter 182
Total $ 3,078
52 Cisco Systems, Inc.