| 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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September 28, 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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$ |
3,034 |
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$ |
(1,557 |
) |
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$ |
1,477 |
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Acquisition-related customer relationships |
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1,760 |
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(757 |
) |
|
1,003 |
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Acquisition-related trade names |
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65 |
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(40 |
) |
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25 |
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Licensed technology and patents |
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2,973 |
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(890 |
) |
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2,083 |
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Identified intangible assets subject to amortization |
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7,832 |
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(3,244 |
) |
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4,588 |
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Acquisition-related trade names |
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815 |
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— |
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815 |
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Other intangible assets |
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31 |
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— |
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31 |
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Identified intangible assets not subject to amortization |
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846 |
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— |
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846 |
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Total identified intangible assets |
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$ |
8,678 |
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$ |
(3,244 |
) |
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$ |
5,434 |
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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 |
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Nine Months Ended |
(In Millions) |
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Sep 28,
2013 |
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Sep 29,
2012 |
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Sep 28,
2013 |
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Sep 29,
2012 |
Acquisition-related developed technology |
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$ |
150 |
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$ |
141 |
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$ |
430 |
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$ |
420 |
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Acquisition-related customer relationships |
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70 |
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71 |
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208 |
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224 |
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Acquisition-related trade names |
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3 |
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3 |
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8 |
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9 |
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Licensed technology and patents |
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69 |
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53 |
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|
204 |
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|
148 |
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Other intangible assets |
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— |
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— |
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|
103 |
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— |
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Total amortization expenses |
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$ |
292 |
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$ |
268 |
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$ |
953 |
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$ |
801 |
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Based on the identified intangible assets that are subject to amortization as of September 28, 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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$ |
151 |
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$ |
587 |
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$ |
313 |
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$ |
221 |
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$ |
72 |
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Acquisition-related customer relationships |
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70 |
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268 |
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251 |
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233 |
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141 |
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Acquisition-related trade names |
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3 |
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10 |
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9 |
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3 |
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— |
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Licensed technology and patents |
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66 |
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259 |
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242 |
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227 |
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189 |
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Total future amortization expenses |
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$ |
290 |
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$ |
1,124 |
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$ |
815 |
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$ |
684 |
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$ |
402 |
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