| Identified Intangible Assets [Text Block] |
Note 10: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 2, 2016 |
(In Millions) |
|
Gross Assets |
|
Accumulated
Amortization |
|
Net |
Acquisition-related developed technology |
|
$ |
8,646 |
|
|
$ |
(2,430 |
) |
|
$ |
6,216 |
|
Acquisition-related customer relationships |
|
2,842 |
|
|
(1,291 |
) |
|
1,551 |
|
Acquisition-related brands |
|
146 |
|
|
(62 |
) |
|
84 |
|
Licensed technology and patents |
|
3,001 |
|
|
(1,254 |
) |
|
1,747 |
|
Identified intangible assets subject to amortization |
|
14,635 |
|
|
(5,037 |
) |
|
9,598 |
|
Acquisition-related brands |
|
767 |
|
|
— |
|
|
767 |
|
Other intangible assets |
|
775 |
|
|
— |
|
|
775 |
|
Identified intangible assets not subject to amortization |
|
1,542 |
|
|
— |
|
|
1,542 |
|
Total identified intangible assets |
|
$ |
16,177 |
|
|
$ |
(5,037 |
) |
|
$ |
11,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 26, 2015 |
(In Millions) |
|
Gross Assets |
|
Accumulated
Amortization |
|
Net |
Acquisition-related developed technology |
|
$ |
2,928 |
|
|
$ |
(2,276 |
) |
|
$ |
652 |
|
Acquisition-related customer relationships |
|
1,738 |
|
|
(1,219 |
) |
|
519 |
|
Acquisition-related brands |
|
59 |
|
|
(55 |
) |
|
4 |
|
Licensed technology and patents |
|
3,017 |
|
|
(1,200 |
) |
|
1,817 |
|
Identified intangible assets subject to amortization |
|
7,742 |
|
|
(4,750 |
) |
|
2,992 |
|
Acquisition-related brands |
|
767 |
|
|
— |
|
|
767 |
|
Other intangible assets |
|
174 |
|
|
— |
|
|
174 |
|
Identified intangible assets not subject to amortization |
|
941 |
|
|
— |
|
|
941 |
|
Total identified intangible assets |
|
$ |
8,683 |
|
|
$ |
(4,750 |
) |
|
$ |
3,933 |
|
As a result of our acquisition of Altera during the first quarter of 2016, we recorded $7.6 billion of identified intangible assets. For further information about identified intangible assets recorded as a result of the acquisition during the first quarter of 2016, see "Note 8: Acquisitions."
Amortization expenses, with presentation location on the consolidated condensed statements of income, for each period were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(In Millions) |
|
Location |
|
Apr 2,
2016 |
|
Mar 28,
2015 |
Acquisition-related developed technology |
|
Cost of sales |
|
$ |
235 |
|
|
$ |
120 |
|
Acquisition-related customer relationships |
|
Amortization of acquisition-related intangibles |
|
83 |
|
|
60 |
|
Acquisition-related brands |
|
Amortization of acquisition-related intangibles |
|
7 |
|
|
2 |
|
Licensed technology and patents |
|
Cost of sales |
|
71 |
|
|
69 |
|
Total amortization expenses |
|
|
|
$ |
396 |
|
|
$ |
251 |
|
Based on identified intangible assets that are subject to amortization as of April 2, 2016, we expect future amortization expenses for each period to be as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Remainder of 2016 |
|
2017 |
|
2018 |
|
2019 |
|
2020 |
Acquisition-related developed technology |
|
$ |
702 |
|
|
$ |
792 |
|
|
$ |
779 |
|
|
$ |
776 |
|
|
$ |
742 |
|
Acquisition-related customer relationships |
|
245 |
|
|
241 |
|
|
141 |
|
|
124 |
|
|
121 |
|
Acquisition-related brands |
|
17 |
|
|
13 |
|
|
13 |
|
|
13 |
|
|
13 |
|
Licensed technology and patents |
|
210 |
|
|
239 |
|
|
187 |
|
|
186 |
|
|
174 |
|
Total future amortization expenses |
|
$ |
1,174 |
|
|
$ |
1,285 |
|
|
$ |
1,120 |
|
|
$ |
1,099 |
|
|
$ |
1,050 |
|
|