CAREFUSION Corp | 2013 | FY |

NOTE 10. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table summarizes the changes in the carrying amount of goodwill, net of adjustments for discontinued operations:

 

(in millions)		Total
Balance at June 30, 2011		$	2,933
Goodwill Acquired, Net of Purchase Price Adjustments			116
Foreign Currency Translation Adjustments			(10	)
Balance at June 30, 2012			3,039
Goodwill Acquired, Net of Purchase Price Adjustments			41
Foreign Currency Translation Adjustments			1
Balance at June 30, 2013		$	3,081

As of June 30, 2013, goodwill for the Medical Systems segment and the Procedural Solutions segment was $2,103 million and $978 million, respectively. The amount set forth above for goodwill acquired reflects the acquisition of Intermed, which we completed on November 14, 2012.

As of June 30, 2012, goodwill for the Medical Systems segment and the Procedural Solutions segment was $2,066 million and $973 million, respectively. The amount set forth above for goodwill acquired in fiscal year 2012 reflects the acquisition of Rowa, which we completed on August 1, 2011, the acquisition of PHACTS, which we completed on April 2, 2012, and the acquisition of UK Medical, which we completed on June 1, 2012.

As discussed in note 1 to the consolidated financial statements, during the quarter ended September 30, 2012, we combined our respiratory diagnostics products with our Respiratory Technologies business line, which is included in the Medical Systems segment. As a result, goodwill was reassigned to the Medical Systems and Procedural Solutions operating segments using the relative fair value allocation and is reflected retrospectively.

 

Intangible Assets

Intangible assets with definite lives are amortized over their useful lives which range from 3 to 20 years. The detail of intangible assets by class is as follows:

 

(in millions)		Weighted Average Life (years)		Gross Intangible				Accumulated Amortization				Net Intangible
June 30, 2013
Unamortized Intangibles:
In-Process Research and Development		Indefinite		$	45			$	—			$	45
Trademarks		Indefinite			307				—				307
Total Unamortized Intangibles					352				—				352
Amortized Intangibles:
Trademarks and Patents		11			88				47				41
Developed Technology		9			368				200				168
Customer Relationships		16			480				275				205
Other		7			61				34				27
Total Amortized Intangibles		12			997				556				441
Total Intangibles				$	1,349			$	556			$	793
June 30, 20121
Unamortized Intangibles:
In-Process Research and Development		Indefinite		$	45			$	—			$	45
Trademarks		Indefinite			307				—				307
Total Unamortized Intangibles					352				—				352
Amortized Intangibles:
Trademarks and Patents		11			86				41				45
Developed Technology		9			353				154				199
Customer Relationships		16			478				253				225
Other		8			41				31				10
Total Amortized Intangibles		12			958				479				479
Total Intangibles				$	1,310			$	479			$	831

 

1	Amounts have been adjusted for discontinued operations. See note 2 to the consolidated financial statements.

Amortization expense for the three years ended June 30, 2013, 2012 and 2011 is as follows, net of adjustments for discontinued operations:

 

		Fiscal Year Ended June 30,
(in millions)		2013				2012				2011
Amortization Expense		$	75			$	89			$	80

Amortization expense for each of the next five fiscal years is estimated to be:

 

(in millions)		2014				2015				2016				2017				2018
Amortization Expense		$	74			$	61			$	59			$	54			$	44