| Identified Intangible Assets [Text Block] |
Note 15: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
| |
September 29, 2012 |
| |
|
|
|
Accumulated |
|
|
|
| (In Millions) |
Gross Assets |
|
Amortization |
|
Net |
| Acquisition-related developed technology |
$ |
2,771 |
|
$ |
(976) |
|
$ |
1,795 |
| Acquisition-related customer relationships |
|
1,712 |
|
|
(479) |
|
|
1,233 |
| Acquisition-related trade names |
|
68 |
|
|
(30) |
|
|
38 |
| Licensed technology and patents |
|
2,950 |
|
|
(845) |
|
|
2,105 |
| Identified intangible assets subject to amortization |
$ |
7,501 |
|
$ |
(2,330) |
|
$ |
5,171 |
| Acquisition-related trade names |
|
805 |
|
|
— |
|
|
805 |
| Other intangible assets |
|
245 |
|
|
— |
|
|
245 |
| Identified intangible assets not subject to amortization |
$ |
1,050 |
|
$ |
— |
|
$ |
1,050 |
| Total identified intangible assets |
$ |
8,551 |
|
$ |
(2,330) |
|
$ |
6,221 |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
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 and patents |
|
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 |
During the third quarter of 2012, we purchased wireless patents, including 3G, LTE, and other technologies, from InterDigital, Inc. for $375 million to be amortized over approximately 10 years. 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 and patents 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 |
|
Nine Months Ended |
| |
Sept. 29, |
|
Oct. 1, |
|
Sept. 29, |
|
Oct. 1, |
| (In Millions) |
2012 |
|
2011 |
|
2012 |
|
2011 |
| Acquisition-related developed technology |
$ |
141 |
|
$ |
135 |
|
$ |
420 |
|
$ |
345 |
| Acquisition-related customer relationships |
$ |
71 |
|
$ |
73 |
|
$ |
224 |
|
$ |
180 |
| Acquisition-related trade names |
$ |
3 |
|
$ |
3 |
|
$ |
9 |
|
$ |
8 |
| Licensed technology and patents |
$ |
53 |
|
$ |
45 |
|
$ |
148 |
|
$ |
134 |
Based on the identified intangible assets that are subject to amortization as of September 29, 2012, we expect future amortization expense to be as follows:
| |
Remainder |
|
|
|
|
|
|
|
|
|
|
|
|
| (In Millions) |
of 2012 |
|
2013 |
|
2014 |
|
2015 |
|
2016 |
| Acquisition-related developed technology |
$ |
140 |
|
$ |
551 |
|
$ |
528 |
|
$ |
254 |
|
$ |
167 |
| Acquisition-related customer relationships |
$ |
71 |
|
$ |
275 |
|
$ |
261 |
|
$ |
244 |
|
$ |
226 |
| Acquisition-related trade names |
$ |
3 |
|
$ |
11 |
|
$ |
10 |
|
$ |
10 |
|
$ |
4 |
| Licensed technology and patents |
$ |
56 |
|
$ |
223 |
|
$ |
214 |
|
$ |
197 |
|
$ |
183 |
|