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Depreciation expense for 2014, 2013 and 2012 was $115 million, $139 million and $179 million,
respectively.
Other assets
December 27,
2014
December 28,
2013
(In millions)
Software and technology licenses ....................... $ 219 $ 280
Other ............................................. 125 106
Total other assets .................................... $ 344 $ 386
Accrued and other current liabilities
December 27,
2014
December 28,
2013
(In millions)
Accrued compensation and benefits ..................... $139 $186
Marketing programs and advertising expenses ............. 141 150
Software technology and licenses payable ................ 39 27
Other accrued and current liabilities ..................... 239 167
Total accrued and other current liabilities ................. $558 $530
NOTE 6: Goodwill and Acquired Intangible Assets
Goodwill
The carrying amounts of goodwill as of December 27, 2014 and December 28, 2013 were as follows:
Computing and
Graphics
Enterprise,
Embedded and
Semi-Custom All Other Total
(In millions)
Initial goodwill due to ATI acquisition ................ $1,194 $ 255 $ 745 $ 2,194
Initial goodwill due to SeaMicro acquisition ........... 165 65 — 230
1,359 320 745 2,424
Accumulated impairment losses ..................... (1,126) — (745) (1,871)
Balance as of December 29, 2012 .................... 233 320 — 553
Impairment charges ............................... — — — —
Balance as of December 28, 2013 .................... 233 320 — 553
Impairment charges ............................... (233) — — (233)
Balance as of December 27, 2014 .................... — 320 — 320
Accumulated impairment losses ..................... $(1,359) $ — $(745) $(2,104)
In the third quarter of 2014, the Company’s realignment of its organizational structure, effective July 1,
2014, caused a change in the composition of the Company’s reportable segments and reporting units. This
represented a change in circumstance requiring the reassignment of the goodwill to the new reporting units using
a relative fair value approach and an interim goodwill impairment analysis before and after the Company’s
reorganization. The Company completed this goodwill impairment analysis during the third quarter of 2014. For
purposes of this analysis, the Company’s estimates of fair value were based on the income approach, which
estimates the fair value of the Company’s reporting units based on future discounted cash flows. The Company
determined that each reporting unit’s estimated fair value exceeded its carrying value, indicating that there was
no goodwill impairment.
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