Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Goodwill and Other

v3.23.3
Intangible Assets, Goodwill and Other
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure Acquisition-related Intangible Assets
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:
September 30, 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 $ 12,372  $ (1,368) $ 11,004  $ 12,360  $ (738) $ 11,622 
Customer relationships 12,324  (3,355) 8,969  12,324  (1,973) 10,351 
Customer backlog 809  (809) —  809  (712) 97 
Corporate trade name 65  (65) —  65  (57) 8 
Product trademarks 914  (127) 787  914  (68) 846 
Identified intangible assets subject to amortization 26,484  (5,724) 20,760  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 $ 27,674  $ (5,724) $ 21,950  $ 27,666  $ (3,548) $ 24,118 
Acquisition-related intangible amortization expense was $660 million and $2.2 billion for the three and nine months ended September 30, 2023, respectively.
Acquisition-related intangible amortization expense was $1.0 billion and $2.5 billion for the three and nine months ended September 24, 2022, respectively.
Based on the carrying value of acquisition-related intangibles recorded as of September 30, 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 $ 630 
2024 2,290 
2025 2,065 
2026 1,954 
2027 1,844 
2028 and thereafter 11,977 
Total $ 20,760