Identified Intangible Assets [Text Block] |
Note 12: Identified Intangible Assets
We recorded $4.5 billion of identified intangible assets from our acquisition of Mobileye during the third quarter of 2017. For further information about these acquired identified intangible assets, see "Note 10: Acquisitions and Divestitures."
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December 30, 2017 |
(In Millions) |
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Gross
Assets
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Accumulated
Amortization
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Net |
Acquisition-related developed technology |
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$ |
8,912 |
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$ |
(1,922 |
) |
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$ |
6,990 |
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Acquisition-related customer relationships |
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2,052 |
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(313 |
) |
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1,739 |
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Acquisition-related brands |
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143 |
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(29 |
) |
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114 |
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Licensed technology and patents |
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3,104 |
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(1,370 |
) |
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1,734 |
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Identified intangible assets subject to amortization |
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14,211 |
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(3,634 |
) |
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10,577 |
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In-process research and development |
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2,168 |
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— |
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2,168 |
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Identified intangible assets not subject to amortization |
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2,168 |
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— |
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2,168 |
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Total identified intangible assets |
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$ |
16,379 |
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$ |
(3,634 |
) |
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$ |
12,745 |
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December 31, 2016 |
(In Millions) |
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Gross
Assets
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Accumulated
Amortization
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Net |
Acquisition-related developed technology |
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$ |
7,405 |
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$ |
(1,836 |
) |
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$ |
5,569 |
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Acquisition-related customer relationships |
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1,449 |
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(260 |
) |
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1,189 |
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Acquisition-related brands |
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87 |
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(21 |
) |
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66 |
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Licensed technology and patents |
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3,285 |
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(1,423 |
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1,862 |
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Identified intangible assets subject to amortization |
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12,226 |
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(3,540 |
) |
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8,686 |
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In-process research and development |
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808 |
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— |
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808 |
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Identified intangible assets not subject to amortization |
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808 |
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— |
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808 |
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Total identified intangible assets |
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$ |
13,034 |
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$ |
(3,540 |
) |
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$ |
9,494 |
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Identified intangible assets recorded for each period and their respective estimated weighted average useful lives were as follows:
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December 30, 2017 |
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December 31, 2016 |
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Gross
Assets
(In Millions)
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Estimated Useful Life
(In Years)
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Gross
Assets
(In Millions)
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Estimated Useful Life
(In Years)
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Acquisition-related developed technology |
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$ |
2,346 |
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9 |
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$ |
5,842 |
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9 |
Acquisition-related customer relationships |
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$ |
713 |
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12 |
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$ |
1,148 |
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12 |
Acquisition-related brands |
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$ |
64 |
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10 |
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$ |
87 |
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6 |
Licensed technology and patents |
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$ |
162 |
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7 |
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$ |
342 |
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12 |
During 2017, we acquired in-process R&D assets of $1.4 billion that were not subject to amortization.
The estimated useful life ranges for identified intangible assets that are subject to amortization were as follows:
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(In Years) |
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Estimated
Useful Life Range
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Acquisition-related developed technology |
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5 |
– |
9 |
Acquisition-related customer relationships |
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7 |
– |
12 |
Acquisition-related brands |
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6 |
– |
10 |
Licensed technology and patents |
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2 |
– |
17 |
Amortization expenses recorded in the consolidated statements of income for each period were as follows:
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Years Ended (In Millions) |
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Location |
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Dec 30, 2017 |
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Dec 31, 2016 |
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Dec 26, 2015 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
912 |
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$ |
937 |
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$ |
343 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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161 |
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270 |
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258 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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16 |
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24 |
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7 |
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Licensed technology and patents |
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Cost of sales |
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288 |
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293 |
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282 |
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Total amortization expenses |
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$ |
1,377 |
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$ |
1,524 |
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$ |
890 |
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We expect future amortization expense for the next five years to be as follows:
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(In Millions) |
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2018 |
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2019 |
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2020 |
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2021 |
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2022 |
Acquisition-related developed technology |
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$ |
1,045 |
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$ |
1,043 |
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$ |
1,011 |
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$ |
976 |
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$ |
937 |
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Acquisition-related customer relationships |
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181 |
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180 |
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179 |
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179 |
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171 |
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Acquisition-related brands |
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20 |
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20 |
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20 |
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20 |
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6 |
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Licensed technology and patents |
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256 |
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243 |
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211 |
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195 |
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190 |
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Total future amortization expenses |
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$ |
1,502 |
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$ |
1,486 |
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$ |
1,421 |
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$ |
1,370 |
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$ |
1,304 |
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