| Identified Intangible Assets [Text Block] |
NOTE 9: IDENTIFIED INTANGIBLE ASSETS
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March 31, 2018 |
(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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$ |
9,513 |
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$ |
(2,197 |
) |
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$ |
7,316 |
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Acquisition-related customer relationships |
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2,036 |
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(343 |
) |
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1,693 |
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Acquisition-related brands |
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143 |
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(34 |
) |
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109 |
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Licensed technology and patents |
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3,104 |
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(1,434 |
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1,670 |
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Identified intangible assets subject to amortization |
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14,796 |
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(4,008 |
) |
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10,788 |
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In-process research and development |
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1,567 |
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— |
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1,567 |
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Identified intangible assets not subject to amortization |
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1,567 |
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— |
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1,567 |
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Total identified intangible assets |
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$ |
16,363 |
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$ |
(4,008 |
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$ |
12,355 |
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December 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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$ |
8,912 |
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$ |
(1,922 |
) |
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$ |
6,990 |
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Acquisition-related customer relationships |
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2,052 |
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(313 |
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1,739 |
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Acquisition-related brands |
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143 |
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(29 |
) |
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114 |
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Licensed technology and patents |
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3,104 |
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(1,370 |
) |
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1,734 |
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Identified intangible assets subject to amortization |
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14,211 |
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(3,634 |
) |
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10,577 |
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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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$ |
16,379 |
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$ |
(3,634 |
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$ |
12,745 |
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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 |
(In Millions) |
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Location |
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Mar 31,
2018 |
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Apr 1,
2017 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
275 |
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$ |
209 |
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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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35 |
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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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3 |
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Licensed technology and patents |
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Cost of sales |
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65 |
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74 |
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Total amortization expenses |
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$ |
390 |
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$ |
321 |
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We expect future amortization expenses for the next five years to be as follows:
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(In Millions) |
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Remainder of 2018 |
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2019 |
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2020 |
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2021 |
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2022 |
Acquisition-related developed technology |
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$ |
824 |
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$ |
1,097 |
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$ |
1,066 |
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$ |
1,030 |
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$ |
991 |
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Acquisition-related customer relationships |
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136 |
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180 |
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179 |
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179 |
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171 |
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Acquisition-related brands |
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15 |
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20 |
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20 |
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20 |
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6 |
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Licensed technology and patents |
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195 |
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246 |
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214 |
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195 |
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190 |
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Total future amortization expenses |
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$ |
1,170 |
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$ |
1,543 |
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$ |
1,479 |
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$ |
1,424 |
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$ |
1,358 |
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