Quarterly report pursuant to Section 13 or 15(d)

Identified Intangible Assets

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Identified Intangible Assets
9 Months Ended
Sep. 30, 2017
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Identified Intangible Assets [Text Block]
Note 11: Identified Intangible Assets
As a result of our acquisition of Mobileye during the third quarter of 2017, we recorded $4.5 billion of identified intangible assets. For further information about these acquired identified intangible assets, see "Note 10: Acquisitions and Divestitures."
 
 
September 30, 2017
(In Millions)
 
Gross Assets
 
Accumulated
Amortization
 
Net
Acquisition-related developed technology
 
$
8,937

 
$
(1,686
)
 
$
7,251

Acquisition-related customer relationships
 
2,052

 
(265
)
 
1,787

Acquisition-related brands
 
143

 
(24
)
 
119

Licensed technology and patents
 
3,237

 
(1,504
)
 
1,733

Identified intangible assets subject to amortization
 
14,369

 
(3,479
)
 
10,890

In-process research and development
 
2,168

 

 
2,168

Identified intangible assets not subject to amortization
 
2,168

 

 
2,168

Total identified intangible assets
 
$
16,537

 
$
(3,479
)
 
$
13,058

 
 
December 31, 2016
(In Millions)
 
Gross Assets
 
Accumulated
Amortization
 
Net
Acquisition-related developed technology
 
$
7,405

 
$
(1,836
)
 
$
5,569

Acquisition-related customer relationships
 
1,449

 
(260
)
 
1,189

Acquisition-related brands
 
87

 
(21
)
 
66

Licensed technology and patents
 
3,285

 
(1,423
)
 
1,862

Identified intangible assets subject to amortization
 
12,226

 
(3,540
)
 
8,686

In-process research and development
 
808

 

 
808

Identified intangible assets not subject to amortization
 
808

 

 
808

Total identified intangible assets
 
$
13,034

 
$
(3,540
)
 
$
9,494


Amortization expenses recorded in the consolidated condensed statements of income for each period were as follows:
 
 
 
 
Three Months Ended
 
Nine Months Ended
(In Millions)
 
Location
 
Sep 30,
2017
 
Oct 1,
2016
 
Sep 30,
2017
 
Oct 1,
2016
Acquisition-related developed technology
 
Cost of sales
 
$
243

 
$
235

 
$
650

 
$
705

Acquisition-related customer relationships
 
Amortization of acquisition-related intangibles
 
45

 
69

 
113

 
234

Acquisition-related brands
 
Amortization of acquisition-related intangibles
 
4

 
5

 
11

 
19

Licensed technology and patents
 
Cost of sales
 
73

 
76

 
225

 
218

Total amortization expense
 
 
 
$
365

 
$
385

 
$
999

 
$
1,176


We expect future amortization expense for the next five years to be as follows:
(In Millions)
 
Remainder of 2017
 
2018
 
2019
 
2020
 
2021
Acquisition-related developed technology
 
$
262

 
$
1,045

 
$
1,043

 
$
1,011

 
$
976

Acquisition-related customer relationships
 
48

 
181

 
180

 
179

 
179

Acquisition-related brands
 
5

 
20

 
20

 
20

 
20

Licensed technology and patents
 
61

 
239

 
227

 
202

 
187

Total future amortization expenses
 
$
376

 
$
1,485

 
$
1,470

 
$
1,412

 
$
1,362