Intel 2012 Annual Report Download - page 77

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During the first quarter of 2011, we formed the Netbook and Tablet Group, which included platforms designed for the
netbook and tablet market segments and was included in the other Intel architecture operating segments. Due to the
formation of this new operating segment, goodwill was transferred from our PC Client Group to the Netbook and Tablet
Group. In 2012, we reorganized and allocated goodwill from the Netbook and Tablet Group into three operating segments:
Netbook Group, Tablet Group, and Service Provider Group. These three new operating segments are included in the
other Intel architecture operating segments. Additionally, the former Ultra-Mobility Group is now the Phone Group. For
further information see “Note 28: Operating Segments and Geographic Information.”
During the fourth quarters of 2012, 2011, and 2010, we completed our annual impairment assessments and we concluded
that goodwill was not impaired in any of these years. The accumulated impairment losses as of December 29, 2012 were
$719 million: $341 million associated with our PC Client Group, $279 million associated with our Data Center Group, and
$99 million associated with other Intel architecture operating segments.
Note 16: Identified Intangible Assets
Identified intangible assets consisted of the following as of December 29, 2012 and December 31, 2011:
December 29, 2012
(In Millions)
Gross
Assets
Accumulated
Amortization
Net
Acquisition-related developed technology..................................................................
$ 2,778
$ (1,116)
$ 1,662
Acquisition-related customer relationships .................................................................
1,712
(551)
1,161
Acquisition-related trade names .................................................................................
68
(33)
35
Licensed technology and patents...............................................................................
2,986
(699)
2,287
Other intangible assets...............................................................................................
238
(86)
152
Identified intangible assets subject to amortization .............................................
$ 7,782
$ (2,485)
$ 5,297
Acquisition-related trade names.................................................................................
809
—
809
Other intangible assets...............................................................................................
129
—
129
Identified intangible assets not subject to amortization ......................................
$ 938
$ —
$ 938
Total identified intangible assets............................................................................
$ 8,720
$ (2,485)
$ 6,235
December 31, 2011
(In Millions)
Gross
Assets
Accumulated
Amortization
Net
Acquisition-related developed technology..................................................................
$ 2,615
$ (570)
$ 2,045
Acquisition-related customer relationships .................................................................
1,714
(254)
1,460
Acquisition-related trade names .................................................................................
68
(21)
47
Licensed technology and patents...............................................................................
2,395
(707)
1,688
Identified intangible assets subject to amortization .............................................
$ 6,792
$ (1,552)
$ 5,240
Acquisition-related trade names .................................................................................
806
—
806
Other intangible assets...............................................................................................
221
—
221
Identified intangible assets not subject to amortization ......................................
1,027
$ —
$ 1,027
Total identified intangible assets............................................................................
$ 7,819
$ (1,552)
$ 6,267
As a result of our acquisitions in 2012, we recorded acquisition-related developed technology of $168 million with a
weighted average life of 10 years. During 2012, we purchased licensed technology and patents of $815 million with a
weighted average useful life of nine years, including wireless patents purchased from InterDigital, Inc. for $375 million to
be amortized over approximately 10 years. Additionally, we recorded other intangible assets subject to amortization of
$238 million associated with customer relationships, which will be amortized over four years.
As a result of our acquisition of McAfee during the first quarter of 2011, we recorded $3.6 billion of identified intangible
assets. In addition, as a result of our other acquisitions during 2011, we recorded $1.4 billion of identified intangible
assets, the substantial majority of which was from the acquisition of the WLS business of Infineon.
In January 2011, we entered into a long-term patent cross-license agreement with NVIDIA. Under the agreement, we
received a license to all of NVIDIA’s patents with a capture period that runs through March 2017 while NVIDIA products