| Identified Intangible Assets [Text Block] |
Note 9: Identified Intangible Assets
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April 1, 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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$ |
7,340 |
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$ |
(1,992 |
) |
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$ |
5,348 |
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Acquisition-related customer relationships |
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1,340 |
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(190 |
) |
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1,150 |
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Acquisition-related brands |
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79 |
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(16 |
) |
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63 |
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Licensed technology and patents |
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3,178 |
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(1,390 |
) |
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1,788 |
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Identified intangible assets subject to amortization |
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11,937 |
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(3,588 |
) |
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8,349 |
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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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$ |
12,745 |
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$ |
(3,588 |
) |
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$ |
9,157 |
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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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Amortization expenses recorded in the consolidated condensed statements of income for each period were as follows:
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Three Months Ended |
(In Millions) |
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Location |
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Apr 1,
2017 |
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Apr 2,
2016 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
209 |
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$ |
235 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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35 |
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83 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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3 |
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7 |
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Licensed technology and patents |
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Cost of sales |
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74 |
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71 |
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Total amortization expenses |
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$ |
321 |
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$ |
396 |
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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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Remainder of 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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$ |
592 |
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$ |
784 |
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$ |
782 |
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$ |
750 |
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$ |
715 |
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Acquisition-related customer relationships |
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101 |
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122 |
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121 |
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119 |
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119 |
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Acquisition-related brands |
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10 |
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13 |
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13 |
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13 |
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14 |
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Licensed technology and patents |
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205 |
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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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$ |
908 |
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$ |
1,149 |
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$ |
1,134 |
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$ |
1,075 |
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$ |
1,025 |
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