| Identified Intangible Assets [Text Block] |
NOTE 9: IDENTIFIED INTANGIBLE ASSETS
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June 30, 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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$ |
(2,472 |
) |
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$ |
7,041 |
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Acquisition-related customer relationships |
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2,036 |
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(388 |
) |
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1,648 |
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Acquisition-related brands |
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143 |
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(39 |
) |
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104 |
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Licensed technology and patents |
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3,084 |
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(1,487 |
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1,597 |
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Identified intangible assets subject to amortization |
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14,776 |
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(4,386 |
) |
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10,390 |
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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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Other intangible assets |
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141 |
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— |
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141 |
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Identified intangible assets not subject to amortization |
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1,708 |
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— |
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1,708 |
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Total identified intangible assets |
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$ |
16,484 |
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$ |
(4,386 |
) |
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$ |
12,098 |
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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 |
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Six Months Ended |
(In Millions) |
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Location |
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Jun 30,
2018 |
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Jul 1,
2017 |
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Jun 30,
2018 |
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Jul 1,
2017 |
Acquisition-related developed technology |
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Cost of sales |
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$ |
275 |
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$ |
198 |
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$ |
550 |
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$ |
407 |
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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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33 |
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90 |
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68 |
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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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4 |
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10 |
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7 |
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Licensed technology and patents |
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Cost of sales |
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67 |
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78 |
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132 |
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152 |
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Total amortization expenses |
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$ |
392 |
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$ |
313 |
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$ |
782 |
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$ |
634 |
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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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$ |
549 |
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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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90 |
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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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10 |
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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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127 |
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238 |
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208 |
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196 |
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191 |
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Total future amortization expenses |
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$ |
776 |
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$ |
1,535 |
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$ |
1,473 |
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$ |
1,425 |
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$ |
1,359 |
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