Annual report pursuant to Section 13 and 15(d)

Goodwill and Acquired Intangible Assets

v2.4.0.6
Goodwill and Acquired Intangible Assets
 12 Months Ended
Dec. 29, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets
Goodwill and Acquired Intangible Assets
Goodwill
The changes in the carrying amounts of goodwill as of December 29, 2012 and December 31, 2011 were as follows:
 
Computing
Solutions
 
Graphics
 
All Other
 
Total
 
(In millions)
Initial goodwill due to ATI acquisition
$
161

 
$
1,288

 
$
745

 
$
2,194

Accumulated impairment losses
(161
)
 
(965
)
 
(745
)
 
(1,871
)
Balance as of December 31, 2011
—

 
323

 
—

 
323

Addition due to SeaMicro acquisition
230

 
—

 
—

 
230

Balance as of December 29, 2012
$
230

 
$
323

 
$
—

 
$
553


The carrying amount of goodwill as of December 29, 2012, December 31, 2011 and December 25, 2010 was $553 million, $323 million and $323 million, respectively.
In the fourth quarters of 2012, 2011 and 2010, 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 any of the periods.

Acquisition-related intangible assets
The balances of acquisition-related intangible assets as of December 29, 2012, were as follows:
 
Developed technology
 
In-process research and development
 
Game
console
royalty
agreements
 
Customer
relationships
 
Trademark
and trade
name
 
Total
Intangible assets, net as of December 25, 2010
$
—

 
$
—

 
$
25

 
$
1

 
$
11

 
$
37

Amortization expense
—

 
—

 
(25
)
 
(1
)
 
(3
)
 
(29
)
Intangible assets, net as of December 31, 2011
—

 
—

 
—

 
—

 
8

 
8

Addition due to SeaMicro acquisition
86

 
11

 
—

 
4

 
1

 
102

Completion of in-process research and development
5

 
(5
)
 
—

 
—

 
—

 
—

Amortization expense
(9
)
 
—

 
—

 
(1
)
 
(4
)
 
(14
)
Intangible assets, net as of December 29, 2012
$
82

 
$
6

 
$
—

 
$
3

 
$
5

 
$
96


Accumulated amortization of acquired intangible assets as of December 29, 2012 was approximately $554 million.
As of December 29, 2012, the Company's future amortization expenses related to acquisition-related intangible assets were as follows:
Year
(In millions)
2013
$
17

2014
14

2015
13

2016
11

2017
11

2018 and thereafter
24

Total intangible assets subject to amortization
$
90

In-process research and development
$
6

Total intangible assets, net
$
96