Intel 2008 Annual Report Download - page 95

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Identified intangible assets consisted of the following as of December 29, 2007:
During 2007, we acquired intellectual property assets for $170 million with a weighted average life of 11 years. The majority
of the intellectual property assets acquired represented the fair value of assets capitalized as a result of a settlement agreement
with Transmeta Corporation. Pursuant to the agreement, we agreed to pay Transmeta a total of $250 million in exchange for a
technology license and other consideration. The present value of the settlement was $236 million of which $113 million was
charged to cost of sales. The charge to cost of sales related to the portion of the license attributable to certain product sales
through the third quarter of 2007. The remaining $123 million represented the value of the intellectual property assets
capitalized and is being amortized to cost of sales over the assets’ remaining useful lives.
During 2007, we acquired acquisition-
related developed technology for $15 million with a weighted average life of four years,
and recorded other intangible assets of $40 million with a weighted average life of four years.
All of our identified intangible assets are subject to amortization. We recorded the amortization of identified intangible assets
on the consolidated statements of income as follows: intellectual property assets generally in cost of sales; acquisition-related
developed technology in marketing, general and administrative; and other intangible assets as either a reduction of revenue or
marketing, general and administrative.
Amortization expenses for the three years ended December 27, 2008 were as follows:
Based on identified intangible assets recorded as of December 27, 2008, and assuming that the underlying assets will not be
impaired in the future, we expect amortization expenses for each period to be as follows:
Note 15: Restructuring and Asset Impairment Charges
The following table summarizes restructuring and asset impairment charges by plan for the three years ended December 27,
2008:
86
Accumulated
(In Millions)
Gross Assets
Amortization
Net
Intellectual property assets
$
1,158
$
(438
)
$
720
Acquisition
-
related developed technology
19
(3
)
Other intangible assets
360
(136
)
224
Total identified intangible assets
$
1,537
$
(577
)
$
960
(In Millions)
2008
2007
2006
Intellectual property assets
$
164
$
159
$
178
Acquisition
-
related developed technology
$
5
$
1
$
Other intangible assets
$
87
$
92
$
(In Millions)
2009
2010
2011
2012
2013
Intellectual property assets
$
142
$
132
$
79
$
68
$
Acquisition
-
related developed technology
$
5
$
5
$
4
$
—
$
—
Other intangible assets
$
124
$
$
—
$
—
$
—
(In Millions)
2008
2007
2006
2008 NAND plan
$
215
$
—
$
—
2006 efficiency program
495
516
555
Total restructuring and asset impairment charges
$
710
$
516
$
555