AMD 2008 Annual Report Download - page 121
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Graphics segments and the Handheld business unit were impaired primarily due to the revised lower revenue
forecasts associated with the products incorporating the developed product technology, customer relationships,
and the trademarks and trade names. The Company measured the amount of impairment by calculating the
amount by which the carrying value of the assets exceeded their estimated fair values, which were based on
projected discounted future net cash flows. As a result of this impairment analysis, the Company recorded an
impairment charge of approximately $62 million, which is included in the caption “Impairment of goodwill and
acquired intangible assets” in its 2008 consolidated statement of operations.
The balances of acquisition-related intangible assets as of December 27, 2008, were as follows:
Developed
product
technology
Game
console
royalty
agreements
Customer
relationships
Trademark
and trade
name
Customer
backlog Total
Cost of ATI Acquisition-Related
Intangible Assets .................. $752 $147 $257 $62 $ 36 $1,254
Reclassification to discontinued
operations(1) .................. (255) — (59) (10) (2) (326)
Amortization expense ............ (17) (5) (8) (1) (5) (36)
Intangible Assets, Net December 31,
2006 ........................... $480 $142 $190 $51 $ 29 $ 892
Amortization expense ............ (93) (30) (49) (7) (29) (208)
Impairment charges ............. (219) — — — — (219)
Intangible Assets, Net December 29,
2007 ........................... $168 $112 $141 $44 $— $ 465
Amortization expense ............ (55) (29) (45) (7) — (136)
Impairment charges ............. (80) — (34) (16) — (130)
Reclassification(2) ............... (31) — — — — (31)
Intangible Assets, Net December 27,
2008 ........................... $ 2 $ 83 $ 62 $21 $— $ 168
Weighted average amortization period (in
months) ......................... 23 60 44 72 14
(1) Represents the reclassification of the Digital Television business unit to discontinued operations. (See Note
17)
(2) Represents the reclassification of certain assets related to the Handheld business unit that were sold to
Qualcomm in the first quarter of 2009. (See 2008 Impairment)
Estimated future amortization expense related to acquisition-related intangible assets is as follows:
In millions
Fiscal Year
2009 ............................................................ $ 70
2010 ............................................................ 61
2011 ............................................................ 29
2012 ............................................................ 4
Thereafter ........................................................ 4
Total ............................................................ $168
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