harris corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Changes in the carrying amount of goodwill for the fiscal years ended July 1, 2011 and July 2, 2010, by
business segment, were as follows:
RF
Communications
Integrated
Network
Solutions
Government
Communications
Systems Total
Balance at July 3, 2009 — net of impairment losses. .... $411.6 $
(In millions)
844.3 $251.2 $1,507.1
Goodwill acquired during the period .............. 4.1 — 39.5 43.6
Currency translation adjustments .................
Other (including true-ups of previously estimated
3.9 17.2 1.8 22.9
purchase price allocations) .................... 3.0 — (0.4) 2.6
Balance at July 2, 2010 — net of impairment losses. .... 422.6 861.5 292.1 1,576.2
Goodwill acquired during the period .............. — 786.9 — 786.9
Currency translation adjustments .................
Other (including true-ups of previously estimated
1.8 15.9 0.8 18.5
purchase price allocations) .................... — (0.2) — (0.2)
Balance at July 1, 2011 — net of impairment losses. .... $424.4 $1,664.1 $292.9 $2,381.4
Balance at July 1, 2011 — before impairment losses .... $424.4 $1,825.0 $292.9 $2,542.3
Accumulated impairment losses ................... — (160.9) — (160.9)
Balance at July 1, 2011 — net of impairment losses. .... $424.4 $1,664.1 $292.9 $2,381.4
The goodwill resulting from acquisitions was associated primarily with the acquired companies’ market
presence and leading positions, growth opportunities in the markets in which the acquired companies operated,
experienced work forces and established operating infrastructures. The goodwill related to the Schlumberger GCS
and Wireless Systems acquisitions is deductible for tax purposes, the goodwill related to the Carefx acquisition is
nondeductible for tax purposes, and most of the goodwill related to the CapRock acquisition is nondeductible for tax
purposes.
In the table above, the accumulated impairment losses in our Integrated Network Solutions segment related to
Broadcast and New Media Solutions and were recorded in the fourth quarter of fiscal 2009.
NOTE 9: INTANGIBLE ASSETS
Intangible assets subject to amortization and not subject to amortization were as follows:
Gross
Carrying
Amount
2011 2010
Accumulated
Amortization Net
Gross
Carrying
Amount
Accumulated
Amortization Net
(In millions)
Customer relationships ................. $374.2 $ 90.0 $284.2 $229.7 $ 66.2 $163.5
Developed technologies ................ 181.1 86.2 94.9 173.3 77.8 95.5
Contract backlog ..................... 142.8 52.9 89.9 57.5 30.6 26.9
Trade names ........................ 41.7 9.1 32.6 15.8 4.8 11.0
Other ............................. 6.1 5.7 0.4 8.1 7.6 0.5
Total subject to amortization ............ 745.9 243.9 502.0 484.4 187.0 297.4
Total not subject to amortization ......... 0.4 — 0.4 0.4 — 0.4
Total intangible assets ................. $746.3 $243.9 $502.4 $484.8 $187.0 $297.8
Amortization expense related to intangible assets was $68.5 million, $49.6 million and $43.3 million in fiscal
2011, 2010 and 2009, respectively.
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