| 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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October 1, 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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$ |
7,399 |
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$ |
(1,650 |
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$ |
5,749 |
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Acquisition-related customer relationships |
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1,434 |
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(225 |
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1,209 |
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Acquisition-related brands |
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87 |
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(15 |
) |
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72 |
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Licensed technology and patents |
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3,045 |
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(1,373 |
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1,672 |
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Identified intangible assets subject to amortization |
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11,965 |
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(3,263 |
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8,702 |
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Acquisition-related brands |
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— |
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— |
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— |
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Other intangible assets |
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822 |
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— |
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822 |
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Identified intangible assets not subject to amortization |
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822 |
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— |
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822 |
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Total identified intangible assets |
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$ |
12,787 |
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$ |
(3,263 |
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$ |
9,524 |
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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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Identified intangible assets associated with our divestiture of ISecG were not included in the October 1, 2016 table above. For further information, see "Note 8: Acquisitions and Divestitures."
As a result of our acquisition of Altera during the first quarter of 2016, we recorded $7.6 billion of identified intangible assets. For further information about these acquired identified intangible assets, see "Note 8: Acquisitions and Divestitures."
Amortization expenses recorded in the consolidated condensed statements of income for each period were as follows:
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Three Months Ended |
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Nine Months Ended |
(In Millions) |
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Location |
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Oct 1,
2016 |
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Sep 26,
2015 |
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Oct 1,
2016 |
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Sep 26,
2015 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
235 |
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$ |
76 |
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$ |
705 |
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$ |
271 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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69 |
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66 |
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234 |
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192 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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5 |
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2 |
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19 |
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6 |
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Licensed technology and patents |
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Cost of sales |
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76 |
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71 |
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218 |
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211 |
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Total amortization expenses |
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$ |
385 |
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$ |
215 |
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$ |
1,176 |
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$ |
680 |
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Based on identified intangible assets that are subject to amortization as of October 1, 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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$ |
232 |
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$ |
794 |
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$ |
777 |
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$ |
774 |
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$ |
742 |
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Acquisition-related customer relationships |
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33 |
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123 |
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122 |
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122 |
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120 |
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Acquisition-related brands |
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5 |
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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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75 |
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261 |
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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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$ |
345 |
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$ |
1,191 |
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$ |
1,124 |
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$ |
1,109 |
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$ |
1,049 |
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