Identified Intangible Assets [Text Block] |
Note 8: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
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March 30, 2013 |
(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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$ |
2,769 |
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$ |
(1,250 |
) |
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$ |
1,519 |
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Acquisition-related customer relationships |
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1,691 |
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(614 |
) |
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1,077 |
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Acquisition-related trade names |
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68 |
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(36 |
) |
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32 |
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Licensed technology and patents |
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3,013 |
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(766 |
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2,247 |
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Other intangible assets |
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189 |
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(189 |
) |
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— |
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Identified intangible assets subject to amortization |
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7,730 |
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(2,855 |
) |
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4,875 |
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Acquisition-related trade names |
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803 |
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— |
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803 |
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Other intangible assets |
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129 |
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— |
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129 |
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Identified intangible assets not subject to amortization |
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932 |
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— |
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932 |
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Total identified intangible assets |
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$ |
8,662 |
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$ |
(2,855 |
) |
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$ |
5,807 |
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December 29, 2012 |
(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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$ |
2,778 |
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$ |
(1,116 |
) |
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$ |
1,662 |
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Acquisition-related customer relationships |
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1,712 |
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(551 |
) |
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1,161 |
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Acquisition-related trade names |
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68 |
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(33 |
) |
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35 |
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Licensed technology and patents |
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2,986 |
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(699 |
) |
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2,287 |
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Other intangible assets |
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238 |
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(86 |
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152 |
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Identified intangible assets subject to amortization |
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7,782 |
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(2,485 |
) |
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5,297 |
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Acquisition-related trade names |
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809 |
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— |
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809 |
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Other intangible assets |
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129 |
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— |
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129 |
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Identified intangible assets not subject to amortization |
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938 |
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— |
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938 |
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Total identified intangible assets |
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$ |
8,720 |
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$ |
(2,485 |
) |
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$ |
6,235 |
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For identified intangible assets that are subject to amortization, we recorded amortization expense on the consolidated condensed statements of income as follows: amortization of acquisition-related developed technology and licensed technology and patents is included in cost of sales, amortization of acquisition-related customer relationships and trade names is included in amortization of acquisition-related intangibles, and amortization of other intangible assets is recorded as a reduction of revenue.
Amortization expenses during each period were as follows:
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Three Months Ended |
(In Millions) |
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Mar 30, 2013 |
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Mar 31, 2012 |
Acquisition-related developed technology |
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$ |
140 |
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$ |
137 |
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Acquisition-related customer relationships |
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$ |
70 |
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$ |
78 |
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Acquisition-related trade names |
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$ |
3 |
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$ |
3 |
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Licensed technology and patents |
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$ |
66 |
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$ |
48 |
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Other intangible assets |
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$ |
103 |
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$ |
— |
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Based on the identified intangible assets that are subject to amortization as of March 30, 2013, we expect future amortization expense to be as follows:
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(In Millions) |
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Remainder of 2013 |
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2014 |
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2015 |
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2016 |
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2017 |
Acquisition-related developed technology |
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$ |
411 |
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$ |
527 |
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$ |
254 |
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$ |
167 |
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$ |
47 |
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Acquisition-related customer relationships |
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$ |
202 |
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$ |
258 |
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$ |
241 |
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$ |
223 |
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$ |
132 |
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Acquisition-related trade names |
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$ |
8 |
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$ |
10 |
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$ |
9 |
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$ |
4 |
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$ |
1 |
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Licensed technology and patents |
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$ |
205 |
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$ |
263 |
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$ |
247 |
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$ |
233 |
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$ |
195 |
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