Apple 2015 Annual Report Download - page 56

Other Non-Current Liabilities
2015 2014
Deferred tax liabilities $ 24,062 $ 20,259
Other non-current liabilities 9,365 4,567
Total other non-current liabilities $ 33,427 $ 24,826
Other Income/(Expense), Net
The following table shows the detail of other income/(expense), net for 2015, 2014 and 2013 (in millions):
2015 2014 2013
Interest and dividend income $ 2,921 $ 1,795 $ 1,616
Interest expense (733) (384) (136)
Other expense, net (903) (431) (324)
Total other income/(expense), net $ 1,285 $ 980 $ 1,156
Note 4 – Goodwill and Other Intangible Assets
On July 31, 2014, the Company completed the acquisitions of Beats Music, LLC, which offers a subscription streaming music service,
and Beats Electronics, LLC, which makes Beats®headphones, speakers and audio software (collectively, “Beats”). The total purchase
price consideration for these acquisitions was $2.6 billion, which consisted primarily of cash, of which $2.2 billion was allocated to
goodwill, $636 million to acquired intangible assets and $258 million to net liabilities assumed. Concurrent with the close of the
acquisitions, the Company repaid $295 million of existing Beats outstanding debt to third-party creditors. In conjunction with the Beats
acquisitions, the Company issued approximately 5.1 million shares of its common stock to certain former equity holders of Beats. The
restricted stock was valued at approximately $485 million based on the Company’s common stock on the acquisition date. The majority
of these shares, valued at approximately $417 million, will vest over time based on continued employment with Apple.
The Company also completed various other business acquisitions during 2014 for an aggregate cash consideration, net of cash acquired,
of $957 million, of which $828 million was allocated to goodwill, $257 million to acquired intangible assets and $128 million to net liabilities
assumed.
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 26, 2015 and September 27, 2014 (in millions):
2015 2014
Gross
Carrying
Amount Accumulated Amortization Net Carrying Amount
Gross
Carrying
Amount Accumulated Amortization Net Carrying Amount
Definite-lived and amortizable acquired
intangible assets $ 8,125 $ (4,332) $ 3,793 $ 7,127 $ (3,085) $ 4,042
Indefinite-lived and non-amortizable acquired
intangible assets 100 0 100 100 0 100
Total acquired intangible assets $ 8,225 $ (4,332) $ 3,893 $ 7,227 $ (3,085) $ 4,142
Amortization expense related to acquired intangible assets was $1.3 billion, $1.1 billion and $960 million in 2015, 2014 and 2013,
respectively. As of September 26, 2015, the remaining weighted-average amortization period for acquired intangible assets is 3.6 years.
The expected annual amortization expense related to acquired intangible assets as of September 26, 2015, is as follows (in millions):
2016 $ 1,288
2017 1,033
2018 786
2019 342
2020 166
Thereafter 178
Total $ 3,793
Apple Inc. | 2015 Form 10-K | 54