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Note 4 – Goodwill and Other Intangible Assets
The Company’s acquired intangible assets with definite useful 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 28, 2013 and September 29, 2012 (in millions):
2013 2012
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Definite lived and amortizable acquired
intangible assets .................... $6,081 $(2,002) $4,079 $5,166 $(1,042) $4,124
Indefinite lived and non-amortizable
trademarks ........................ 100 0 100 100 0 100
Total acquired intangible assets ...... $6,181 $(2,002) $4,179 $5,266 $(1,042) $4,224
During 2013 and 2012, the Company completed various business acquisitions. In 2013, the aggregate cash
consideration, net of cash acquired, was $496 million, of which $419 million was allocated to goodwill, $179
million to acquired intangible assets and $102 million to net liabilities assumed. 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 net liabilities assumed.
The Company’s gross carrying amount of goodwill was $1.6 billion and $1.1 billion as of September 28, 2013
and September 29, 2012, respectively. The Company did not have any goodwill impairment during 2013, 2012 or
2011.
Amortization expense related to acquired intangible assets was $960 million, $605 million and $192 million in
2013, 2012 and 2011, respectively. As of September 28, 2013 the remaining weighted-average amortization
period for acquired intangible assets is 4.5 years. The expected annual amortization expense related to acquired
intangible assets as of September 28, 2013, is as follows (in millions):
2014 ............................................................................... $1,050
2015 ............................................................................... 985
2016 ............................................................................... 833
2017 ............................................................................... 606
2018 ............................................................................... 434
Thereafter ........................................................................... 171
Total ........................................................................... $4,079
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