Memorex 2010 Annual Report Download - page 55

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Note 6 — Intangible Assets and Goodwill
Intangible Assets
Intangible assets consist of the following:
Trade
Names Software
Customer
Relationships Other Total
(In millions)
December 31, 2010
Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $332.4 $ 54.2 $ 58.8 $ 8.3 $ 453.7
Accumulated amortization . . . . . . . . . . . . . . . . (44.9) (49.1) (36.2) (3.1) (133.3)
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $287.5 $ 5.1 $ 22.6 $ 5.2 $ 320.4
December 31, 2009
Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $333.2 $ 62.3 $ 65.5 $ 6.6 $ 467.6
Accumulated amortization . . . . . . . . . . . . . . . . (34.4) (56.8) (33.9) (5.2) (130.3)
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $298.8 $ 5.5 $ 31.6 $ 1.4 $ 337.3
In February 2010, we entered into an amendment to our license agreement with ProStor Systems. Under the terms
of the agreement, we paid $5.0 million and will have a semi-exclusive license to manufacture, market and sell RDX
removable hard disk systems through 2020. We recorded the payment as an other intangible asset and are amortizing the
payment over a five year period.
Amortization expense for intangible assets consisted of the following:
2010 2009 2008
Years Ended December 31,
(In millions)
Amortization expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23.6 $23.3 $23.4
Based on the intangible assets in service as of December 31, 2010, estimated amortization expense for each of the
next five years ending December 31 is as follows:
2011 2012 2013 2014 2015
(In millions)
Amortization expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24.0 $23.5 $18.2 $13.1 $11.4
52
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)