Quarterly report pursuant to Section 13 or 15(d)

Identified Intangible Assets

v3.5.0.2
Identified Intangible Assets
6 Months Ended
Jul. 02, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Identified Intangible Assets [Text Block]
Note 10: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
 
 
July 2, 2016
(In Millions)
 
Gross Assets
 
Accumulated
Amortization
 
Net
Acquisition-related developed technology
 
$
8,629

 
$
(2,642
)
 
$
5,987

Acquisition-related customer relationships
 
2,743

 
(1,274
)
 
1,469

Acquisition-related brands
 
129

 
(52
)
 
77

Licensed technology and patents
 
3,065

 
(1,312
)
 
1,753

Identified intangible assets subject to amortization
 
14,566

 
(5,280
)
 
9,286

Acquisition-related brands
 
767

 

 
767

Other intangible assets
 
768

 

 
768

Identified intangible assets not subject to amortization
 
1,535

 

 
1,535

Total identified intangible assets
 
$
16,101

 
$
(5,280
)
 
$
10,821

 
 
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 these acquired identified intangible assets, 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
 
Six Months Ended
(In Millions)
 
Location
 
Jul 2,
2016
 
Jun 27,
2015
 
Jul 2,
2016
 
Jun 27,
2015
Acquisition-related developed technology
 
Cost of sales
 
$
235

 
$
75

 
$
470

 
$
195

Acquisition-related customer relationships
 
Amortization of acquisition-related intangibles
 
82

 
66

 
165

 
126

Acquisition-related brands
 
Amortization of acquisition-related intangibles
 
7

 
2

 
14

 
4

Licensed technology and patents
 
Cost of sales
 
71

 
71

 
142

 
140

Total amortization expenses
 
 
 
$
395

 
$
214

 
$
791

 
$
465


Based on identified intangible assets that are subject to amortization as of July 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
 
$
467

 
$
795

 
$
780

 
$
776

 
$
742

Acquisition-related customer relationships
 
163

 
241

 
141

 
124

 
121

Acquisition-related brands
 
11

 
13

 
13

 
13

 
13

Licensed technology and patents
 
152

 
264

 
212

 
200

 
174

Total future amortization expenses
 
$
793

 
$
1,313

 
$
1,146

 
$
1,113

 
$
1,050