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intangible assets within the Computing and Graphics reporting unit under ASC 360, “Accounting for the
Impairment or Disposal of Long-Lived Assets.” The Company determined that the forecasted undiscounted cash
flows related to these assets or asset groups were in excess of their carrying values, and therefore these assets
were not impaired.
In the fourth quarters of 2015 and 2013, the Company conducted its annual impairment tests of
goodwill. Based on the results of the Company’s analysis of goodwill, each reporting unit’s fair value exceeded
its carrying value, indicating that there was no goodwill impairment in 2015 and 2013.
Acquisition-related intangible assets
As a part of the Company’s strategy to simplify and sharpen its investment focus, the Company decided to
exit the dense server systems business, formerly SeaMicro, in the first quarter of 2015. As a result, the Company
recorded a charge of $76 million in “Restructuring and other special charges, net” on the Company’s
consolidated statements of operations during 2015. This charge consisted of an impairment charge of $62 million
related to the acquired intangible assets. The Company concluded that the carrying value of the acquired
intangible assets associated with its dense server systems business was fully impaired as the Company did not
have plans to utilize the related freedom fabric technology in any of its future products nor did it have any plans
at that time to monetize the associated intellectual property.
The balances of acquisition-related intangible assets as of December 26, 2015 and December 27, 2014 were
as follows:
December 26, 2015 December 27, 2014
Gross
Impairment
charges
Accumulated
Amortization Net
Weighted-
average
amortization
period Gross
Accumulated
Amortization Net
(In millions, except years)
Developed
technology ........ $258 $(54) $(204) $— 5.15 years $258 $(201) $57
In-process research and
development ....... 6 (6) — — N/A 6 — 6
Customer
relationships ....... 168 (1) (167) — 1.25 years 168 (167) 1
Trademark and trade
name ............. 37 (1) (36) — 1.25 years 37 (36) 1
Total ............... $469 $(62) $(407) $— 4.56 years $469 $(404) $65
The following table summarizes amortization expense associated with acquisition-related intangible assets:
2015 2014 2013
(In millions)
Developed technology .................................... $ 3 $ 13 $13
Customer relationships .................................... — 1 1
Trademark and trade name ................................. — — 4
Total .................................................. $ 3 $ 14 $18
82