Intel 2014 Annual Report Download - page 84

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INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During 2014, we also acquired other intangible assets of $197 million that are not subject to amortization.
Amortization expenses, with presentation location on the consolidated statements of income, for each period were as follows:
(In Millions) Location 2014 2013 2012
Acquisition-related developed technology ....... Cost of sales $ 600 $ 576 $ 557
Acquisition-related customer relationships ...... Amortization of acquisition-related
intangibles 284 279 296
Acquisition-related trade names .............. Amortization of acquisition-related
intangibles 10 12 12
Licensed technology and patents ............. Cost of sales 275 272 214
Other intangible assets ..................... Reduction of revenue —103 86
Total amortization expenses ............................................... $ 1,169 $ 1,242 $ 1,165
Based on identified intangible assets that are subject to amortization as of December 27, 2014, we expect future amortization
expense for each period to be as follows:
(In Millions) 2015 2016 2017 2018 2019
Acquisition-related developed technology ................... $ 330 $ 240 $ 91 $ 69 $ 60
Acquisition-related customer relationships .................. 247 229 141 35 15
Acquisition-related trade names .......................... 9 3———
Licensed technology and patents ......................... 263 248 210 168 167
Total future amortization expenses ...................... $ 849 $ 720 $ 442 $ 272 $ 242
Note 12: Other Long-Term Assets
Other long-term assets at the end of each period were as follows:
(In Millions)
Dec 27,
2014
Dec 28,
2013
Equity method investments ............................................................ $ 1,446 $ 1,038
Non-marketable cost method investments ................................................. 1,769 1,270
Non-current deferred tax assets ........................................................ 622 434
Loans receivable .................................................................... 416 952
Pre-payments for property, plant and equipment ............................................ 636 521
Other ............................................................................. 1,672 1,274
Total other long-term assets .......................................................... $ 6,561 $ 5,489
During 2014, we received and transferred $135 million of equipment from other long-term assets to property, plant and
equipment. A substantial majority of the equipment was prepaid in 2010 and 2011. We recognized the pre-payments within
operating activities in the consolidated statement of cash flows when we paid for the equipment, and the receipt of the equipment
is reflected as a non-cash transaction in the current period.
Note 13: Restructuring and Asset Impairment Charges
Beginning in the third quarter of 2013, management approved several restructuring actions, including targeted workforce
reductions and the exit of certain businesses and facilities. These actions include the wind down of our 200 millimeter wafer
fabrication facility in Massachusetts, which we expect to cease production in the first quarter of 2015, and the closure of our
assembly and test facility in Costa Rica, which ceased production in the fourth quarter of 2014. These targeted reductions will
enable the company to better align our resources in areas providing the greatest benefit in the current business environment. We
expect these actions to be substantially complete by the end of 2015.
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