Intel 2013 Annual Report Download - page 81

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76
The identified intangible assets assumed in the acquisitions completed during 2011, excluding McAfee, were
recognized as follows:
Fair Value
(In Millions)
Estimated
Useful Life
(In Years)
Developed technology $ 1,102 3 – 9
Customer relationships 144 5 – 8
Other intangible assets 44 2 – 7
Total identified intangible assets subject to amortization $ 1,290
In-process research and development 119
Total identified intangible assets $ 1,409
Acquired developed technology represents the fair value of the acquirees’ products that have reached technological
feasibility and are a part of the acquirees’ product lines at the time acquired. Customer relationships represent the
fair value of the underlying relationships and agreements with the acquirees’ customers. In-process R&D represents
the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of acquisition.
Since the acquisitions were completed, most of the projects have been completed and the associated costs are
being amortized.
Actual and Pro Forma Results of Acquirees
Net revenue and net income attributable to acquisitions completed during 2011 have been included in our
consolidated statements of income from their respective acquisition dates. The acquisitions completed during 2011
were not individually significant to our consolidated results of operations; however, they were significant in the
aggregate. During 2011, the results of the businesses acquired in 2011 contributed approximately $3.6 billion to our
net revenue and reduced our net income by approximately $275 million; substantially all of these impacts were
attributable to McAfee and the former IMC and include the impacts of the amortization of acquired identified
intangible assets.
McAfee is a non-reportable operating segment and is aggregated with similar non-reportable operating segments
within the software and services operating segments category for segment reporting purposes. IMC has been
reorganized into our Multi-Comm and existing Phone Group operating segments which are non-reportable operating
segments and are aggregated with similar non-reportable operating segments within the other Intel architecture
(Other IA) operating segments category for segment reporting purposes. For further information, see “Note 27:
Operating Segments and Geographic Information.”
The unaudited pro forma financial results for 2011 combine the historical results of Intel for 2011 along with the
historical results of the businesses acquired during 2011. The results include the effects of pro forma adjustments
as if businesses acquired in 2011 were acquired on December 27, 2009.
The unaudited pro forma financial results presented below do not include any anticipated synergies or other
expected benefits of the acquisitions. This is presented for informational purposes only and is not indicative of future
operations or results that would have been achieved had the acquisitions been completed as of December 27,
2009.
(In Millions, Except Per Share Amounts—Unaudited) 2011
Net revenue $ 54,738
Net income $ 13,028
Diluted earnings per share $ 2.41
Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)