| 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 26, 2015 |
(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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$ |
2,928 |
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$ |
(2,276 |
) |
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$ |
652 |
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Acquisition-related customer relationships |
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1,738 |
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(1,219 |
) |
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519 |
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Acquisition-related brands |
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59 |
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(55 |
) |
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4 |
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Licensed technology and patents |
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3,017 |
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(1,200 |
) |
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1,817 |
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Identified intangible assets subject to amortization |
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7,742 |
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(4,750 |
) |
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2,992 |
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Acquisition-related brands |
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767 |
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— |
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767 |
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Other intangible assets |
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174 |
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— |
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174 |
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Identified intangible assets not subject to amortization |
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941 |
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— |
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941 |
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Total identified intangible assets |
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$ |
8,683 |
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$ |
(4,750 |
) |
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$ |
3,933 |
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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 brands |
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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 brands |
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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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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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December 26, 2015 |
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December 27, 2014 |
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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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$ |
238 |
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6 |
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$ |
175 |
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6 |
Acquisition-related customer relationships |
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$ |
110 |
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11 |
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$ |
79 |
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9 |
Licensed technology and patents |
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$ |
176 |
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7 |
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$ |
93 |
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8 |
All intangible assets acquired during 2015 are subject to amortization. During 2014, we acquired other intangible assets of $197 million that were not subject to amortization.
Amortization expenses, with presentation location on the consolidated statements of income, for each period were as follows:
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Years Ended
(In Millions) |
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Location |
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Dec 26,
2015 |
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Dec 27,
2014 |
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Dec 28,
2013 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
343 |
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$ |
600 |
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$ |
576 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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258 |
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284 |
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279 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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7 |
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10 |
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12 |
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Licensed technology and patents |
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Cost of sales |
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282 |
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275 |
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272 |
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Other intangible assets |
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Reduction of revenue |
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— |
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— |
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103 |
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Total amortization expenses |
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$ |
890 |
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$ |
1,169 |
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$ |
1,242 |
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Based on identified intangible assets that are subject to amortization as of December 26, 2015 (which do not include intangibles from the Altera acquisition), we expect future amortization expense for each period to be as follows:
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(In Millions) |
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2016 |
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2017 |
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2018 |
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2019 |
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2020 |
Acquisition-related developed technology |
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$ |
260 |
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$ |
115 |
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$ |
101 |
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$ |
98 |
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$ |
64 |
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Acquisition-related customer relationships |
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229 |
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143 |
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42 |
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25 |
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22 |
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Acquisition-related brands |
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3 |
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— |
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— |
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— |
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— |
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Licensed technology and patents |
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282 |
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239 |
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187 |
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186 |
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174 |
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Total future amortization expenses |
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$ |
774 |
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$ |
497 |
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$ |
330 |
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$ |
309 |
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$ |
260 |
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