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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July 2, 2016 |
(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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$ |
8,629 |
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$ |
(2,642 |
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$ |
5,987 |
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Acquisition-related customer relationships |
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2,743 |
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(1,274 |
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1,469 |
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Acquisition-related brands |
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129 |
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(52 |
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77 |
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Licensed technology and patents |
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3,065 |
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(1,312 |
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1,753 |
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Identified intangible assets subject to amortization |
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14,566 |
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(5,280 |
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9,286 |
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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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768 |
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— |
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768 |
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Identified intangible assets not subject to amortization |
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1,535 |
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— |
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1,535 |
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Total identified intangible assets |
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$ |
16,101 |
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$ |
(5,280 |
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$ |
10,821 |
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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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As a result of our acquisition of Altera during the first quarter of 2016, we recorded $7.6 billion of identified intangible assets. For further information about these acquired identified intangible assets, see "Note 8: Acquisitions."
Amortization expenses, with presentation location on the consolidated condensed statements of income, for each period were as follows:
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Three Months Ended |
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Six Months Ended |
(In Millions) |
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Location |
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Jul 2, 2016 |
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Jun 27, 2015 |
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Jul 2, 2016 |
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Jun 27, 2015 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
235 |
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$ |
75 |
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$ |
470 |
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$ |
195 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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82 |
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66 |
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165 |
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126 |
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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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2 |
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14 |
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4 |
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Licensed technology and patents |
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Cost of sales |
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71 |
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71 |
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142 |
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140 |
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Total amortization expenses |
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$ |
395 |
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$ |
214 |
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$ |
791 |
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$ |
465 |
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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:
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(In Millions) |
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Remainder of 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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$ |
467 |
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$ |
795 |
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$ |
780 |
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$ |
776 |
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$ |
742 |
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Acquisition-related customer relationships |
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163 |
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241 |
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141 |
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124 |
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121 |
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Acquisition-related brands |
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11 |
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13 |
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13 |
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13 |
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13 |
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Licensed technology and patents |
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152 |
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264 |
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212 |
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200 |
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174 |
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Total future amortization expenses |
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$ |
793 |
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$ |
1,313 |
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$ |
1,146 |
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$ |
1,113 |
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$ |
1,050 |
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