| Identified Intangible Assets [Text Block] |
Note 11: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
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December 27, 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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$ |
3,009 |
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$ |
(2,192 |
) |
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$ |
817 |
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Acquisition-related customer relationships |
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1,698 |
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(1,001 |
) |
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697 |
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Acquisition-related trade names |
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61 |
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(49 |
) |
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12 |
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Licensed technology and patents |
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3,153 |
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(1,224 |
) |
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1,929 |
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Identified intangible assets subject to amortization |
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7,921 |
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(4,466 |
) |
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3,455 |
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Acquisition-related trade names |
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788 |
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— |
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788 |
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Other intangible assets |
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203 |
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— |
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203 |
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Identified intangible assets not subject to amortization |
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991 |
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— |
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991 |
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Total identified intangible assets |
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$ |
8,912 |
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$ |
(4,466 |
) |
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$ |
4,446 |
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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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As a result of our acquisitions and purchases of licensed technology and patents, identified intangible assets recorded for each period and their respective estimated weighted average useful life were as follows:
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2014 |
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2013 |
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Gross
Assets
(In Millions)
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Estimated Useful Life
(In Years)
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Gross
Assets
(In Millions)
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Estimated Useful Life
(In Years)
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Acquisition-related developed technology |
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$ |
175 |
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6 |
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$ |
114 |
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5 |
Acquisition-related customer relationships |
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$ |
79 |
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9 |
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$ |
60 |
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7 |
Licensed technology and patents |
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$ |
93 |
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8 |
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$ |
36 |
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10 |
During 2014, we also acquired other intangible assets of $197 million that are not subject to amortization.
Amortization expenses, with presentation location on the consolidated statements of income, for each period were as follows:
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(In Millions) |
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Location |
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2014 |
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2013 |
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2012 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
600 |
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$ |
576 |
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$ |
557 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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284 |
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279 |
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296 |
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Acquisition-related trade names |
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Amortization of acquisition-related intangibles |
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10 |
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12 |
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12 |
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Licensed technology and patents |
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Cost of sales |
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275 |
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272 |
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214 |
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Other intangible assets |
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Reduction of revenue |
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— |
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103 |
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86 |
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Total amortization expenses |
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$ |
1,169 |
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$ |
1,242 |
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$ |
1,165 |
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Based on identified intangible assets that are subject to amortization as of December 27, 2014, we expect future amortization expense for each period to be as follows:
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(In Millions) |
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2015 |
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2016 |
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2017 |
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2018 |
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2019 |
Acquisition-related developed technology |
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$ |
330 |
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$ |
240 |
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$ |
91 |
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$ |
69 |
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$ |
60 |
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Acquisition-related customer relationships |
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247 |
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229 |
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141 |
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35 |
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15 |
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Acquisition-related trade names |
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9 |
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3 |
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— |
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— |
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— |
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Licensed technology and patents |
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263 |
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248 |
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210 |
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168 |
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167 |
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Total future amortization expenses |
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$ |
849 |
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$ |
720 |
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$ |
442 |
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$ |
272 |
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$ |
242 |
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