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Note 4 – Goodwill and Other Intangible Assets
The Company’s acquired intangible assets with definite lives primarily consist of patents and licenses and are
amortized over periods typically from three to seven years. The following table summarizes the components of
gross and net intangible asset balances as of September 29, 2012 and September 24, 2011 (in millions):
2012 2011
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Definite lived and amortizable acquired
intangible assets .................... $5,166 $(1,042) $4,124 $3,873 $(437) $3,436
Indefinite lived and non-amortizable
trademarks . . . . . . . . . . . . . . . . . . . . . . . . 100 0 100 100 0 100
Total acquired intangible assets ...... $5,266 $(1,042) $4,224 $3,973 $(437) $3,536
During 2012 and 2011, the Company completed various business acquisitions. In 2012, the aggregate cash
consideration, net of cash acquired, was $350 million, of which $245 million was allocated to goodwill,
$113 million to acquired intangible assets and $8 million to liabilities assumed. In 2011, the aggregate cash
consideration, net of cash acquired, was $244 million, of which $167 million was allocated to goodwill and
$77 million to acquired intangible assets.
The Company’s gross carrying amount of goodwill was $1.1 billion and $896 million as of September 29, 2012
and September 24, 2011, respectively. The Company did not have any goodwill impairment during 2012, 2011 or
2010.
Amortization expense related to acquired intangible assets was $605 million, $192 million and $69 million in
2012, 2011 and 2010, respectively. As of September 29, 2012 the remaining weighted-average amortization
period for acquired intangible assets is 5.2 years. The expected annual amortization expense related to acquired
intangible assets as of September 29, 2012, is as follows (in millions):
2013 ............................................................................... $ 673
2014 ............................................................................... 737
2015 ............................................................................... 753
2016 ............................................................................... 758
2017 ............................................................................... 635
Thereafter ........................................................................... 568
Total ........................................................................... $4,124
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