Goodwill

12 Months Ended

Jul. 01, 2011


*NOTE 8:*	*GOODWILL*

We test goodwill and other indefinite-lived intangible assets at least annually for impairment. See Note 3: Discontinued Operations for information regarding impairment of HSTX’s goodwill and its other indefinite-lived intangible assets recorded in fiscal 2009. See Note 22: Impairment of Goodwill and Other Long-Lived Assets for information regarding impairment of our Broadcast and New Media Solutions reporting unit’s goodwill recorded in fiscal 2009.

As discussed further in Note 25: Business Segments in these Notes, effective for the third quarter of fiscal 2011, we changed our operating segment reporting structure, which also changed certain identified reporting units. As a result of these changes, we reallocated goodwill to the affected reporting units using the relative fair value approach, which resulted in changes in the goodwill balances by business segment at July 3, 2009 and at July 2, 2010 as presented below from amounts previously reported.

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:


			Integrated			Government
	RF		Network			Communications
	Communications		Solutions			Systems			Total
	(In millions)

Balance at July 3, 2009 — net of impairment losses	$	411.6	$	844.3		$	251.2		$	1,507.1
Goodwill acquired during the period		4.1		—			39.5			43.6
Currency translation adjustments		3.9		17.2			1.8			22.9
Other (including true-ups of previously estimated 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		1.8		15.9			0.8			18.5
Other (including true-ups of previously estimated 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.