Identified Intangible Assets [Text Block] |
Note 10: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
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June 28, 2014 |
(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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$ |
2,924 |
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$ |
(1,982 |
) |
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$ |
942 |
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Acquisition-related customer relationships |
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1,759 |
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(966 |
) |
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793 |
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Acquisition-related trade names |
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65 |
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(50 |
) |
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15 |
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Licensed technology and patents |
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3,088 |
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(1,088 |
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2,000 |
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Identified intangible assets subject to amortization |
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7,836 |
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(4,086 |
) |
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3,750 |
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Acquisition-related trade names |
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817 |
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— |
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817 |
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Other intangible assets |
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130 |
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— |
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130 |
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Identified intangible assets not subject to amortization |
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947 |
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— |
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947 |
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Total identified intangible assets |
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$ |
8,783 |
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$ |
(4,086 |
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$ |
4,697 |
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December 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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$ |
2,922 |
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$ |
(1,691 |
) |
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$ |
1,231 |
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Acquisition-related customer relationships |
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1,760 |
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(828 |
) |
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932 |
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Acquisition-related trade names |
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65 |
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(44 |
) |
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21 |
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Licensed technology and patents |
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3,093 |
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(974 |
) |
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2,119 |
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Identified intangible assets subject to amortization |
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7,840 |
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(3,537 |
) |
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4,303 |
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Acquisition-related trade names |
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818 |
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— |
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818 |
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Other intangible assets |
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29 |
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— |
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29 |
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Identified intangible assets not subject to amortization |
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847 |
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— |
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847 |
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Total identified intangible assets |
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$ |
8,687 |
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$ |
(3,537 |
) |
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$ |
5,150 |
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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 for each period were as follows:
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Three Months Ended |
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Six Months Ended |
(In Millions) |
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Jun 28, 2014 |
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Jun 29, 2013 |
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Jun 28, 2014 |
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Jun 29, 2013 |
Acquisition-related developed technology |
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$ |
147 |
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$ |
140 |
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$ |
293 |
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$ |
280 |
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Acquisition-related customer relationships |
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69 |
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68 |
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139 |
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138 |
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Acquisition-related trade names |
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3 |
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2 |
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6 |
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5 |
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Licensed technology and patents |
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71 |
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69 |
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139 |
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135 |
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Other intangible assets |
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— |
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— |
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— |
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103 |
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Total amortization expenses |
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$ |
290 |
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$ |
279 |
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$ |
577 |
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$ |
661 |
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Based on identified intangible assets that are subject to amortization as of June 28, 2014, we expect future amortization expenses for each period to be as follows:
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(In Millions) |
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Remainder of 2014 |
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2015 |
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2016 |
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2017 |
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2018 |
Acquisition-related developed technology |
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$ |
287 |
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$ |
304 |
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$ |
212 |
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$ |
63 |
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$ |
41 |
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Acquisition-related customer relationships |
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130 |
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251 |
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233 |
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141 |
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29 |
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Acquisition-related trade names |
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3 |
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9 |
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3 |
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— |
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— |
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Licensed technology and patents |
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135 |
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252 |
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237 |
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200 |
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159 |
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Total future amortization expenses |
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$ |
555 |
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$ |
816 |
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$ |
685 |
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$ |
404 |
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$ |
229 |
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