| Identified Intangible Assets [Text Block] |
Note 11: Identified Intangible Assets
As a result of our acquisition of Mobileye during the third quarter of 2017, we recorded $4.5 billion of identified intangible assets. For further information about these acquired identified intangible assets, see "Note 10: Acquisitions and Divestitures."
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September 30, 2017 |
(In Millions) |
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Gross Assets |
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Accumulated
Amortization |
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Net |
Acquisition-related developed technology |
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$ |
8,937 |
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$ |
(1,686 |
) |
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$ |
7,251 |
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Acquisition-related customer relationships |
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2,052 |
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(265 |
) |
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1,787 |
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Acquisition-related brands |
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143 |
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(24 |
) |
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119 |
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Licensed technology and patents |
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3,237 |
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(1,504 |
) |
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1,733 |
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Identified intangible assets subject to amortization |
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14,369 |
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(3,479 |
) |
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10,890 |
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In-process research and development |
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2,168 |
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— |
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2,168 |
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Identified intangible assets not subject to amortization |
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2,168 |
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— |
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2,168 |
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Total identified intangible assets |
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$ |
16,537 |
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$ |
(3,479 |
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$ |
13,058 |
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December 31, 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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$ |
7,405 |
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$ |
(1,836 |
) |
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$ |
5,569 |
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Acquisition-related customer relationships |
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1,449 |
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(260 |
) |
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1,189 |
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Acquisition-related brands |
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87 |
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(21 |
) |
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66 |
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Licensed technology and patents |
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3,285 |
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(1,423 |
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1,862 |
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Identified intangible assets subject to amortization |
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12,226 |
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(3,540 |
) |
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8,686 |
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In-process research and development |
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808 |
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— |
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808 |
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Identified intangible assets not subject to amortization |
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808 |
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— |
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808 |
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Total identified intangible assets |
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$ |
13,034 |
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$ |
(3,540 |
) |
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$ |
9,494 |
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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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Sep 30,
2017 |
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Oct 1,
2016 |
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Sep 30,
2017 |
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Oct 1,
2016 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
243 |
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$ |
235 |
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$ |
650 |
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$ |
705 |
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Acquisition-related customer relationships |
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Amortization of acquisition-related intangibles |
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45 |
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69 |
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113 |
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234 |
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Acquisition-related brands |
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Amortization of acquisition-related intangibles |
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4 |
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5 |
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11 |
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19 |
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Licensed technology and patents |
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Cost of sales |
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73 |
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76 |
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225 |
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218 |
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Total amortization expense |
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$ |
365 |
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$ |
385 |
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$ |
999 |
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$ |
1,176 |
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We expect future amortization expense for the next five years to be as follows:
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(In Millions) |
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Remainder of 2017 |
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2018 |
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2019 |
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2020 |
|
2021 |
Acquisition-related developed technology |
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$ |
262 |
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$ |
1,045 |
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$ |
1,043 |
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$ |
1,011 |
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$ |
976 |
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Acquisition-related customer relationships |
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48 |
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181 |
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180 |
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179 |
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179 |
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Acquisition-related brands |
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5 |
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20 |
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20 |
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20 |
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20 |
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Licensed technology and patents |
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61 |
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|
239 |
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227 |
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202 |
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187 |
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Total future amortization expenses |
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$ |
376 |
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$ |
1,485 |
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$ |
1,470 |
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$ |
1,412 |
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$ |
1,362 |
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