Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Goodwill and Other

v3.23.1
Intangible Assets, Goodwill and Other
 3 Months Ended
Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure Acquisition-related Intangible Assets and Goodwill
Xilinx Acquisition
On February 14, 2022, the Company completed the acquisition of Xilinx, Inc. (Xilinx), a leading provider of adaptive computing solutions, for a total purchase consideration of $48.8 billion. The acquisition of Xilinx expands the Company’s product portfolio, which now includes FPGAs, Adaptive SoC products and ACAP products. The Company allocated the purchase price to $27.3 billion of identified intangible assets and $1.3 billion of net liabilities, with the excess purchase price of $22.8 billion recorded as goodwill.
Pensando Acquisition
On May 26, 2022, the Company completed the acquisition of Pensando Systems, Inc. (Pensando), a leader in next-generation distributed computing, for a total purchase consideration of $1.7 billion. The acquisition of Pensando and its leading distributed services platform expands the Company’s ability to offer leadership solutions for cloud, enterprise, and edge customers. The Company allocated the purchase price to $349 million of identified intangible assets and $208 million of other net assets, with the excess purchase price of $1.1 billion recorded as goodwill.
Acquisition-related Intangible Assets
Acquisition-related intangibles were as follows:
April 1, 2023 December 31, 2022
Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
(In millions) (In millions)
Developed technology $ 12,360  $ (948) $ 11,412  $ 12,360  $ (738) $ 11,622 
Customer relationships 12,324  (2,464) 9,860  12,324  (1,973) 10,351 
Customer backlog 809  (806) 3  809  (712) 97 
Corporate trade name 65  (65) —  65  (57) 8 
Product trademarks 914  (88) 826  914  (68) 846 
Identified intangible assets subject to amortization 26,472  (4,371) 22,101  26,472  (3,548) 22,924 
IPR&D not subject to amortization 1,190  —  1,190  1,194  1,194 
Total acquisition-related intangible assets $ 27,662  $ (4,371) $ 23,291  $ 27,666  $ (3,548) $ 24,118 
Acquisition-related intangible amortization expense was $823 million and $479 million for the three months ended April 1, 2023 and March 26, 2022, respectively.
Based on the carrying value of acquisition-related intangibles recorded as of April 1, 2023, and assuming no subsequent impairment of the underlying assets, the estimated annual amortization expense for acquisition-related intangibles is expected to be as follows:
Fiscal Year (In millions)
Remainder of 2023 $ 1,981 
2024 2,286 
2025 2,061 
2026 1,951 
2027 1,844 
2028 and thereafter 11,978 
Total $ 22,101