Note 4 – Goodwill and Other Intangible Assets
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 28, 2013 and September 29, 2012 (in millions):
| 2013 | 2012 | |||||||||||||||||||||||
| Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
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Definite lived and amortizable acquired intangible assets |
$ | 6,081 | $ | (2,002 | ) | $ | 4,079 | $ | 5,166 | $ | (1,042 | ) | $ | 4,124 | ||||||||||
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Indefinite lived and non-amortizable trademarks |
100 | 0 | 100 | 100 | 0 | 100 | ||||||||||||||||||
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Total acquired intangible assets |
$ | 6,181 | $ | (2,002 | ) | $ | 4,179 | $ | 5,266 | $ | (1,042 | ) | $ | 4,224 | ||||||||||
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During 2013 and 2012, the Company completed various business acquisitions. In 2013, the aggregate cash consideration, net of cash acquired, was $496 million, of which $419 million was allocated to goodwill, $179 million to acquired intangible assets and $102 million to net liabilities assumed. In 2012, the aggregate cash consideration, net of cash acquired, was $350 million, of which $245 million was allocated to goodwill, $113 million to acquired intangible assets and $8 million to net liabilities assumed.
The Company’s gross carrying amount of goodwill was $1.6 billion and $1.1 billion as of September 28, 2013 and September 29, 2012, respectively. The Company did not have any goodwill impairment during 2013, 2012 or 2011.
Amortization expense related to acquired intangible assets was $960 million, $605 million and $192 million in 2013, 2012 and 2011, respectively. As of September 28, 2013 the remaining weighted-average amortization period for acquired intangible assets is 4.5 years. The expected annual amortization expense related to acquired intangible assets as of September 28, 2013, is as follows (in millions):
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2014 |
$ | 1,050 | ||
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2015 |
985 | |||
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2016 |
833 | |||
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2017 |
606 | |||
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2018 |
434 | |||
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Thereafter |
171 | |||
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Total |
$ | 4,079 | ||
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