Intel 2002 Annual Report Download - page 59

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During 2002, no goodwill was acquired or impaired. During 2001, other adjustments of $125 million were primarily related to the reduction
of a valuation allowance on deferred tax assets due to changes in the realizability of certain tax benefits related to companies acquired in 2001
and prior years.
Note 16: Identified Intangible Assets
During 2002, the company acquired developed technology valued at $35 million, with an amortization period of 2 years. During 2001,
acquisition-related intangibles acquired totaled $206 million, the majority of which was developed technology, with a weighted average
amortization period of 4 years. Intellectual property assets acquired in 2002 amounted to $317 million, with a weighted average amortization
period of 7 years ($157 million in 2001 with a weighted average amortization period of 6 years). Of the 2002 amount, $295 million represented
the value of intellectual property assets capitalized as a result of payments under the settlement agreement with Intergraph Corporation related to
the lawsuits in Alabama and Texas (see "Note 20: Contingencies"). The value of the Intergraph intellectual property assets and the amount of the
charge to cost of sales in 2002 were derived from the historical and expected future revenue from sales of the relevant microprocessors.
70
Identified intangible assets as of December 28, 2002 consisted of the following:
Identified intangible assets as of December 29, 2001 consisted of the following:
All of the company's identified intangible assets are subject to amortization. Amortization of acquisition-related intangibles and costs
included the following:
Amortization
(1,242
)
(323
)
(45
)
(5
)
(1,615
)
Impairments
(98
)
—
—
—
(
98
)
Other adjustments
(81
)
(41
)
(2
)
(1
)
(125
)
December 29, 2001
3,653
603
68
6
4,330
Workforce-in-place reclassified, net of
deferred tax
12
8
—
—
20
Other adjustments
(21
)
—
1
—
(
20
)
December 28, 2002
$
3,644
$
611
$
69
$
6
$
4,330
(In Millions)
Gross
Assets
Accumulated
Amortization
Net
Acquisition
-
related developed technology
$
1,125
$
(727
)
$
398
Other acquisition
-
related intangibles
74
(52
)
22
Intellectual property assets
750
(336
)
414
Total identified intangible assets
$
1,949
$
(1,115
)
$
834
(In Millions)
Gross
Assets
Accumulated
Amortization
Net
Acquisition
-
related developed technology
$
1,127
$
(421
)
$
706
Other acquisition
-
related intangibles
293
(202
)
Intellectual property assets
438
(221
)
217
Total identified intangible assets
$
1,858
$
(844
)
$
1,014
(In Millions)
2002
2001
2000
Amortization of acquisition
-
related intangibles
$
246
$
347
$
248
Impairment of acquisition
-
related intangibles
127
—
Amortization of acquisition
-
related unearned stock compensation
174
Other acquisition
-
related costs
2
Total
$
548
$
628
$
276