Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Goodwill and Other

v3.23.2
Intangible Assets, Goodwill and Other
 6 Months Ended
Jul. 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 for a total purchase consideration of $48.8 billion. 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) for a total purchase consideration of $1.7 billion. 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:
July 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  $ (1,157) $ 11,203  $ 12,360  $ (738) $ 11,622 
Customer relationships 12,324  (2,925) 9,399  12,324  (1,973) 10,351 
Customer backlog 809  (809) —  809  (712) 97 
Corporate trade name 65  (65) —  65  (57) 8 
Product trademarks 914  (108) 806  914  (68) 846 
Identified intangible assets subject to amortization 26,472  (5,064) 21,408  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  $ (5,064) $ 22,598  $ 27,666  $ (3,548) $ 24,118 
Acquisition-related intangible amortization expense was $693 million and $1.5 billion for the three and six months ended July 1, 2023, respectively.
Acquisition-related intangible amortization expense was $1.0 billion and $1.5 billion for the three and six months ended June 25, 2022, respectively.
Based on the carrying value of acquisition-related intangibles recorded as of July 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 $ 1,288 
2024 2,286 
2025 2,061 
2026 1,951 
2027 1,844 
2028 and thereafter 11,978 
Total $ 21,408