The Hartford 2007 Annual Report Download - page 228

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-51
8. Goodwill and Other Intangible Assets (continued)
The following table shows the Company’ s acquired intangible assets that continue to be subject to amortization and aggregate
amortization expense, net of interest accretion, if any. Except for goodwill, the Company has no intangible assets with indefinite useful
lives.
2007 2006
Acquired Intangible Assets
Gross Carr
y
in
g
Amount
Accumulated Net
Amortization
Gross Carr
y
in
g
Amount
Accumulated Net
Amortization
Renewal rights $ 22 $ 20 $ 22 $ 20
Distribution agreement 70 5 — —
Other 14 14 14 10
Total Acquired Intangible Assets $ 106 $ 39 $ 36 $ 30
Net amortization expense for the years ended December 31, 2007, 2006 and 2005 was $9, $6 and $7, respectively. As of December 31,
2007, the weighted average amortization period was 7 years for renewal rights, 13 years for distribution agreement, 5 years for other
and 10 years for total acquired intangible assets.
The following is detail of the net acquired intangible asset activity for the years ended December 31, 2007, 2006 and 2005,
respectively.
Renewal Rights
Distribution
Agreement Other Total
For the year ended December 31, 2007
Balance, beginning of year $2 $ — $ 4 $6
Distribution agreement — 70 — 70
Amortization, net of the accretion of interest — (5) (4) (9)
Balance, end of year $2 $65 $— $67
For the year ended December 31, 2006
Balance, beginning of year $5 $ — $ 7 $12
Amortization, net of the accretion of interest (3) — (3) (6)
Balance, end of year $2 $ — $ 4 $6
For the year ended December 31, 2005
Balance, beginning of year $9 $ — $ 9 $18
Acquisition of business — — 1 1
Amortization, net of the accretion of interest (4) — (3) (7)
Balance, end of year $5 $ — $ 7 $12
Estimated future net amortization expense for the succeeding five years is as follows:
For the years ended December 31,
2008 $ 7
2009 6
2010 6
2011 6
2012 5
For a discussion of present value of future profits that continue to be subject to amortization and aggregate amortization expense, see
Note 7.