| Identified Intangible Assets [Text Block] |
Note 12: Identified Intangible Assets
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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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December 26, 2015 |
(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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$ |
2,928 |
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$ |
(2,276 |
) |
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$ |
652 |
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Acquisition-related customer relationships |
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1,738 |
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(1,219 |
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519 |
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Acquisition-related brands |
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59 |
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(55 |
) |
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4 |
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Licensed technology and patents |
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3,017 |
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(1,200 |
) |
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1,817 |
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Identified intangible assets subject to amortization |
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7,742 |
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(4,750 |
) |
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2,992 |
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Acquisition-related brands |
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767 |
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— |
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767 |
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In-process research and development |
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102 |
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— |
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102 |
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Other intangible assets |
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72 |
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— |
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72 |
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Identified intangible assets not subject to amortization |
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941 |
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— |
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941 |
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Total identified intangible assets |
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$ |
8,683 |
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$ |
(4,750 |
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$ |
3,933 |
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Identified intangible assets associated with our divestiture of ISecG were reclassified to assets held for sale on the consolidated balance sheet and were not reflected in the December 31, 2016 table above. For further information, see "Note 10: Acquisitions and Divestitures."
As a result of our acquisition of Altera during the first quarter of 2016, we recorded $7.6 billion of identified intangible assets. For further information about these acquired identified intangible assets, see "Note 10: Acquisitions and Divestitures."
As a result of our acquisitions and purchases of licensed technology and patents, identified intangible assets recorded for each period and their respective estimated weighted average useful lives were as follows:
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December 31, 2016 |
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December 26, 2015 |
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Gross
Assets
(In Millions)
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Estimated Useful Life
(In Years)
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Gross
Assets
(In Millions)
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Estimated Useful Life
(In Years)
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Acquisition-related developed technology |
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$ |
5,842 |
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9 |
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$ |
238 |
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6 |
Acquisition-related customer relationships |
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$ |
1,148 |
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12 |
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$ |
110 |
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11 |
Acquisition-related brands |
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$ |
87 |
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6 |
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$ |
— |
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n/a |
Licensed technology and patents |
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$ |
342 |
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12 |
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$ |
176 |
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7 |
During 2016, we acquired in-process R&D assets of $713 million that were not subject to amortization. All intangible assets acquired during 2015 were not subject to amortization.
As of December 31, 2016, the estimated useful life of our acquisition-related brands is six years. The estimated useful life ranges for substantially all other identified intangible assets that are subject to amortization were as follows:
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(In Years) |
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Estimated
Useful Life Range
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Acquisition-related developed technology |
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4 |
– |
9 |
Acquisition-related customer relationships |
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6 |
– |
12 |
Licensed technology and patents |
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2 |
– |
17 |
Amortization expenses recorded in the consolidated statements of income for each period were as follows:
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Years Ended
(In Millions) |
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Location |
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Dec 31,
2016 |
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Dec 26,
2015 |
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Dec 27,
2014 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
937 |
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$ |
343 |
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$ |
600 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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270 |
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258 |
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284 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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24 |
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7 |
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10 |
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Licensed technology and patents |
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Cost of sales |
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293 |
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282 |
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275 |
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Total amortization expenses |
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$ |
1,524 |
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$ |
890 |
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$ |
1,169 |
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Based on identified intangible assets that are subject to amortization as of December 31, 2016, we expect future amortization expense for the next five years to be as follows:
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(In Millions) |
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2017 |
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2018 |
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2019 |
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2020 |
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2021 |
Acquisition-related developed technology |
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$ |
804 |
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$ |
787 |
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$ |
785 |
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$ |
753 |
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$ |
715 |
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Acquisition-related customer relationships |
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137 |
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122 |
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122 |
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120 |
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120 |
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Acquisition-related brands |
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14 |
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13 |
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13 |
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13 |
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13 |
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Licensed technology and patents |
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279 |
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230 |
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218 |
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193 |
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177 |
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Total future amortization expenses |
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$ |
1,234 |
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$ |
1,152 |
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$ |
1,138 |
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$ |
1,079 |
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$ |
1,025 |
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