CAREFUSION Corp | 2013 | FY | 3


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   

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