| Identified Intangible Assets [Text Block] |
Note 10: Identified Intangible Assets
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July 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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$ |
6,591 |
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$ |
(1,441 |
) |
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$ |
5,150 |
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Acquisition-related customer relationships |
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1,340 |
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(224 |
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1,116 |
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Acquisition-related brands |
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79 |
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(19 |
) |
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60 |
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Licensed technology and patents |
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3,184 |
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(1,451 |
) |
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1,733 |
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Identified intangible assets subject to amortization |
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11,194 |
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(3,135 |
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8,059 |
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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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$ |
12,002 |
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$ |
(3,135 |
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$ |
8,867 |
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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 |
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Six Months Ended |
(In Millions) |
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Location |
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Jul 1,
2017 |
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Jul 2,
2016 |
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Jul 1,
2017 |
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Jul 2,
2016 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
198 |
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$ |
235 |
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$ |
407 |
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$ |
470 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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33 |
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82 |
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68 |
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165 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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4 |
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7 |
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7 |
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14 |
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Licensed technology and patents |
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Cost of sales |
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78 |
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71 |
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152 |
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142 |
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Total amortization expense |
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$ |
313 |
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$ |
395 |
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$ |
634 |
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$ |
791 |
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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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$ |
394 |
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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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67 |
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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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7 |
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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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132 |
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231 |
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219 |
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194 |
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179 |
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Total future amortization expenses |
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$ |
600 |
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$ |
1,150 |
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$ |
1,135 |
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$ |
1,076 |
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$ |
1,027 |
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