Intel 2004 Annual Report Download - page 80

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 15: Identified Intangible Assets and Acquisition-Related Unearned Stock Compensation
Identified intangible assets acquired during 2004 and 2003 are summarized as follows:
In 2004, the company entered into certain arrangements related to the hiring of a group of employees which resulted in the recording of
workforce-in-place of $28 million. Also in 2004, the company acquired $18 million in developed technology in connection with an acquisition
qualifying as a business combination (see “Note 13: Acquisitions and Divestitures”).
Of the intellectual property assets acquired in 2004, $63 million represented the value of assets capitalized as a result of payments under
the settlement agreement with Intergraph Corporation related to the lawsuit in Texas (see “Note 18: Contingencies”). The value of the
Intergraph assets was derived from the expected future revenue from Intel microprocessors, Intel chipsets and Intel motherboards sold in
combination. Also during 2004, the company entered into a cross-license agreement for cash consideration of $143 million, which will be
amortized over a period of 10 years.
Identified intangible assets as of December 25, 2004 consisted of the following:
Identified intangible assets as of December 27, 2003 consisted of the following:
Amortization of acquisition-related intangibles and costs included the following:
2004
2003
(In Millions)
Value
Weighted
Average
Life
Value
Weighted
Average
Life
Acquisition
-
related developed technology
$
18
4
$
14
4
Other acquisition
-
related intangibles
28
3
40
2
Intellectual property assets
250
8
96
5
Total identified intangible assets
$
296
$
150
(In Millions)
Gross
Assets
Accumulated
Amortization
Net
Acquisition
-
related developed technology
$
631
$
(514
)
$
117
Other acquisition
-
related intangibles
91
(45
)
46
Intellectual property assets
799
(285
)
514
Total identified intangible assets
$
1,521
$
(844
)
$
677
(In Millions)
Gross
Assets
Accumulated
Amortization
Net
Acquisition
-
related developed technology
$
994
$
(772
)
$
222
Other acquisition
-
related intangibles
94
(49
)
45
Intellectual property assets
604
(212
)
392
Total identified intangible assets
$
1,692
$
(1,033
)
$
659
(In Millions)
2004
2003
2002
Amortization of acquisition
-
related intangibles
$
150
$
203
$
246
Impairment of acquisition
-
related intangibles
—
—
127
Amortization of acquisition
-
related unearned stock compensation
16
39
90
Other acquisition
-
related costs
13
59
85