Identified Intangible Assets [Text Block] |
Note 8: Identified Intangible Assets
Identified intangible assets at the end of each period were as follows:
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June 29, 2013 |
(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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$ |
2,924 |
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$ |
(1,396 |
) |
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$ |
1,528 |
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Acquisition-related customer relationships |
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1,728 |
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(686 |
) |
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1,042 |
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Acquisition-related trade names |
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68 |
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(38 |
) |
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30 |
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Licensed technology and patents |
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3,013 |
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(833 |
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2,180 |
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Identified intangible assets subject to amortization |
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7,733 |
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(2,953 |
) |
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4,780 |
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Acquisition-related trade names |
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809 |
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— |
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809 |
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Other intangible assets |
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31 |
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— |
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31 |
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Identified intangible assets not subject to amortization |
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840 |
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— |
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840 |
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Total identified intangible assets |
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$ |
8,573 |
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$ |
(2,953 |
) |
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$ |
5,620 |
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December 29, 2012 |
(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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$ |
2,778 |
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$ |
(1,116 |
) |
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$ |
1,662 |
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Acquisition-related customer relationships |
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1,712 |
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(551 |
) |
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1,161 |
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Acquisition-related trade names |
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68 |
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(33 |
) |
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35 |
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Licensed technology and patents |
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2,986 |
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(699 |
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2,287 |
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Other intangible assets |
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238 |
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(86 |
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152 |
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Identified intangible assets subject to amortization |
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7,782 |
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(2,485 |
) |
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5,297 |
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Acquisition-related trade names |
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809 |
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— |
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809 |
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Other intangible assets |
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129 |
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— |
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129 |
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Identified intangible assets not subject to amortization |
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938 |
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— |
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938 |
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Total identified intangible assets |
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$ |
8,720 |
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$ |
(2,485 |
) |
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$ |
6,235 |
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For identified intangible assets that are subject to amortization, we recorded amortization expense on the consolidated condensed statements of income as follows: amortization of acquisition-related developed technology and licensed technology and patents is included in cost of sales, amortization of acquisition-related customer relationships and trade names is included in amortization of acquisition-related intangibles, and amortization of other intangible assets is recorded as a reduction of revenue.
Amortization expenses during 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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Jun 29, 2013 |
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Jun 30, 2012 |
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Jun 29, 2013 |
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Jun 30, 2012 |
Acquisition-related developed technology |
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$ |
140 |
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$ |
142 |
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$ |
280 |
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$ |
279 |
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Acquisition-related customer relationships |
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68 |
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75 |
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138 |
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153 |
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Acquisition-related trade names |
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2 |
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3 |
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5 |
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6 |
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Licensed technology and patents |
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69 |
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47 |
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135 |
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95 |
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Other intangible assets |
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— |
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— |
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103 |
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— |
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Total amortization expenses |
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$ |
279 |
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$ |
267 |
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$ |
661 |
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$ |
533 |
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Based on the identified intangible assets that are subject to amortization as of June 29, 2013, we expect future amortization expense to be as follows:
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(In Millions) |
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Remainder of 2013 |
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2014 |
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2015 |
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2016 |
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2017 |
Acquisition-related developed technology |
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$ |
288 |
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$ |
559 |
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$ |
283 |
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$ |
193 |
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$ |
74 |
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Acquisition-related customer relationships |
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137 |
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263 |
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245 |
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228 |
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137 |
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Acquisition-related trade names |
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6 |
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10 |
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9 |
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4 |
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1 |
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Licensed technology and patents |
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137 |
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264 |
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247 |
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233 |
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195 |
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Total future amortization expenses |
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$ |
568 |
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$ |
1,096 |
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$ |
784 |
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$ |
658 |
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$ |
407 |
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