Identified Intangible Assets [Text Block] |
Note 14: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
|
March 31, 2012 |
|
|
|
|
Accumulated |
|
|
|
(In Millions) |
Gross Assets |
|
Amortization |
|
Net |
Acquisition-related developed technology |
$ |
2,633 |
|
$ |
(693) |
|
$ |
1,940 |
Acquisition-related customer relationships |
|
1,714 |
|
|
(331) |
|
|
1,383 |
Acquisition-related trade names |
|
68 |
|
|
(24) |
|
|
44 |
Licensed technology |
|
2,398 |
|
|
(755) |
|
|
1,643 |
Identified intangible assets subject to amortization |
$ |
6,813 |
|
$ |
(1,803) |
|
$ |
5,010 |
Acquisition-related trade names |
|
810 |
|
|
— |
|
|
810 |
Other intangible assets |
|
244 |
|
|
— |
|
|
244 |
Identified intangible assets not subject to amortization |
$ |
1,054 |
|
$ |
— |
|
$ |
1,054 |
Total identified intangible assets |
$ |
7,867 |
|
$ |
(1,803) |
|
$ |
6,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011 |
|
|
|
|
Accumulated |
|
|
|
(In Millions) |
Gross Assets |
|
Amortization |
|
Net |
Acquisition-related developed technology |
$ |
2,615 |
|
$ |
(570) |
|
$ |
2,045 |
Acquisition-related customer relationships |
|
1,714 |
|
|
(254) |
|
|
1,460 |
Acquisition-related trade names |
|
68 |
|
|
(21) |
|
|
47 |
Licensed technology |
|
2,395 |
|
|
(707) |
|
|
1,688 |
Identified intangible assets subject to amortization |
$ |
6,792 |
|
$ |
(1,552) |
|
$ |
5,240 |
Acquisition-related trade names |
|
806 |
|
|
— |
|
|
806 |
Other intangible assets |
|
221 |
|
|
— |
|
|
221 |
Identified intangible assets not subject to amortization |
$ |
1,027 |
|
$ |
— |
|
$ |
1,027 |
Total identified intangible assets |
$ |
7,819 |
|
$ |
(1,552) |
|
$ |
6,267 |
For identified intangible assets that are subject to amortization, we recorded amortization expense on the consolidated condensed statements of income as follows: substantially all amortization of acquisition-related developed technology and licensed technology is included in cost of sales, and amortization of acquisition-related customer relationships and trade names is included in amortization of acquisition-related intangibles.
Amortization expenses for the periods indicated were as follows:
|
Three Months Ended |
|
March 31, |
|
April 2, |
(In Millions) |
2012 |
|
2011 |
Acquisition-related developed technology |
$ |
137 |
|
$ |
73 |
Acquisition-related customer relationships |
$ |
78 |
|
$ |
34 |
Acquisition-related trade names |
$ |
3 |
|
$ |
2 |
Licensed technology |
$ |
48 |
|
$ |
46 |
Based on the identified intangible assets that are subject to amortization as of March 31, 2012, we expect future amortization expense to be as follows:
|
Remainder |
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
of 2012 |
|
2013 |
|
2014 |
|
2015 |
|
2016 |
Acquisition-related developed technology |
$ |
410 |
|
$ |
534 |
|
$ |
512 |
|
$ |
242 |
|
$ |
155 |
Acquisition-related customer relationships |
$ |
220 |
|
$ |
275 |
|
$ |
262 |
|
$ |
244 |
|
$ |
226 |
Acquisition-related trade names |
$ |
9 |
|
$ |
11 |
|
$ |
10 |
|
$ |
10 |
|
$ |
4 |
Licensed technology |
$ |
134 |
|
$ |
165 |
|
$ |
154 |
|
$ |
136 |
|
$ |
121 |
|