| Goodwill |
Acquisition-related Intangible Assets and Goodwill Acquisition-related Intangible Assets
The following table summarizes Acquisition-related Intangible Assets:
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|
|
|
|
|
|
|
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|
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|
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|
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|
December 28, 2024 |
|
December 30, 2023 |
|
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net Carrying Amount |
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net Carrying Amount |
|
|
|
(In millions) |
|
(In millions) |
| Developed technology |
|
|
$ |
13,408 |
|
|
$ |
(2,529) |
|
|
$ |
10,879 |
|
|
$ |
13,390 |
|
|
$ |
(1,583) |
|
|
$ |
11,807 |
|
| Customer relationships |
|
|
12,324 |
|
|
(5,124) |
|
|
7,200 |
|
|
12,324 |
|
|
(3,755) |
|
|
8,569 |
|
| Customer backlog |
|
|
809 |
|
|
(809) |
|
|
— |
|
|
809 |
|
|
(809) |
|
|
— |
|
| Corporate trade name |
|
|
65 |
|
|
(65) |
|
|
— |
|
|
65 |
|
|
(65) |
|
|
— |
|
| Product trademarks |
|
|
914 |
|
|
(225) |
|
|
689 |
|
|
914 |
|
|
(147) |
|
|
767 |
|
Intangible assets subject to amortization |
|
|
27,520 |
|
|
(8,752) |
|
|
18,768 |
|
|
27,502 |
|
|
(6,359) |
|
|
21,143 |
|
| In-process Research and Development (IPR&D) not subject to amortization |
|
|
162 |
|
|
— |
|
|
162 |
|
|
220 |
|
|
— |
|
|
220 |
|
| Total acquisition-related intangible assets |
|
|
$ |
27,682 |
|
|
$ |
(8,752) |
|
|
$ |
18,930 |
|
|
$ |
27,722 |
|
|
$ |
(6,359) |
|
|
$ |
21,363 |
|
Acquisition-related intangible amortization expense was $2.4 billion and $2.8 billion in fiscal year 2024 and 2023, respectively. During the fourth quarter of fiscal year 2024, the Company determined that the fair value of certain IPR&D recorded within the Data Center segment was not recoverable resulting from actions related to the 2024 Restructuring Plan, and recorded an impairment charge of $58 million within Restructuring charges in the Company’s Consolidated Statement of Operations.
Based on the carrying value of acquisition-related intangibles recorded as of December 28, 2024, 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) |
| 2025 |
$ |
2,225 |
|
| 2026 |
2,111 |
|
| 2027 |
1,993 |
|
| 2028 |
1,885 |
|
| 2029 |
1,659 |
|
| 2030 and thereafter |
8,895 |
|
| Total |
$ |
18,768 |
|
Goodwill
The following table summarizes changes in the carrying amount of Goodwill:
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|
|
|
|
|
December 31, 2022 |
|
Acquisitions |
|
December 30, 2023 |
|
Acquisitions |
|
December 28,
2024 |
|
(In millions) |
(In millions) |
| Data Center |
$ |
2,884 |
|
|
$ |
58 |
|
|
$ |
2,942 |
|
|
$ |
461 |
|
|
$ |
3,403 |
|
| Client |
— |
|
|
18 |
|
|
18 |
|
|
108 |
|
|
126 |
|
| Gaming |
238 |
|
|
— |
|
|
238 |
|
|
— |
|
|
238 |
|
| Embedded |
21,055 |
|
|
9 |
|
|
21,064 |
|
|
8 |
|
|
21,072 |
|
| Total |
$ |
24,177 |
|
|
$ |
85 |
|
|
$ |
24,262 |
|
|
$ |
577 |
|
|
$ |
24,839 |
|
|