| Identified Intangible Assets [Text Block] |
NOTE 9: IDENTIFIED INTANGIBLE ASSETS
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September 29, 2018 |
(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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$ |
9,611 |
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$ |
(2,742 |
) |
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$ |
6,869 |
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Acquisition-related customer relationships |
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2,036 |
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(433 |
) |
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1,603 |
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Acquisition-related brands |
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143 |
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(44 |
) |
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99 |
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Licensed technology and patents |
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3,052 |
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(1,505 |
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1,547 |
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Identified intangible assets subject to amortization |
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14,842 |
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(4,724 |
) |
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10,118 |
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In-process research and development |
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1,497 |
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— |
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1,497 |
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Other intangible assets |
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392 |
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— |
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392 |
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Identified intangible assets not subject to amortization |
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1,889 |
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— |
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1,889 |
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Total identified intangible assets |
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$ |
16,731 |
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$ |
(4,724 |
) |
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$ |
12,007 |
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December 30, 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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$ |
8,912 |
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$ |
(1,922 |
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$ |
6,990 |
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Acquisition-related customer relationships |
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2,052 |
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(313 |
) |
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1,739 |
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Acquisition-related brands |
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143 |
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(29 |
) |
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114 |
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Licensed technology and patents |
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3,104 |
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(1,370 |
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1,734 |
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Identified intangible assets subject to amortization |
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14,211 |
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(3,634 |
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10,577 |
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In-process research and development |
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2,168 |
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— |
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2,168 |
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Identified intangible assets not subject to amortization |
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2,168 |
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— |
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2,168 |
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Total identified intangible assets |
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$ |
16,379 |
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$ |
(3,634 |
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$ |
12,745 |
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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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Nine Months Ended |
(In Millions) |
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Location |
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Sep 29,
2018 |
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Sep 30,
2017 |
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Sep 29,
2018 |
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Sep 30,
2017 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
276 |
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$ |
243 |
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$ |
826 |
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$ |
650 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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45 |
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45 |
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135 |
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113 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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5 |
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4 |
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15 |
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11 |
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Licensed technology and patents |
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Cost of sales |
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64 |
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73 |
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196 |
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225 |
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Total amortization expenses |
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$ |
390 |
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$ |
365 |
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$ |
1,172 |
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$ |
999 |
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We expect future amortization expenses for the next five years to be as follows:
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(In Millions) |
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Remainder of 2018 |
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2019 |
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2020 |
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2021 |
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2022 |
Acquisition-related developed technology |
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$ |
279 |
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$ |
1,114 |
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$ |
1,082 |
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$ |
1,047 |
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$ |
1,008 |
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Acquisition-related customer relationships |
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45 |
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180 |
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179 |
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179 |
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171 |
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Acquisition-related brands |
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5 |
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20 |
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20 |
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20 |
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6 |
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Licensed technology and patents |
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64 |
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241 |
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210 |
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198 |
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193 |
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Total future amortization expenses |
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$ |
393 |
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$ |
1,555 |
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$ |
1,491 |
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$ |
1,444 |
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$ |
1,378 |
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