Annual report pursuant to Section 13 and 15(d)

Goodwill and Acquired Intangible Assets

v3.8.0.1
Goodwill and Acquired Intangible Assets
12 Months Ended
Dec. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets
Goodwill and Acquired Intangible Assets
Goodwill
The carrying amounts of goodwill as of December 30, 2017 and December 31, 2016 were as follows:
 
Computing and Graphics
 
Enterprise, Embedded and Semi-Custom
 
All Other
 
Total
 
(In millions)
Initial goodwill due to ATI acquisition
$
1,194

 
$
255

 
$
745

 
$
2,194

Initial goodwill due to SeaMicro acquisition
165

 
65

 

 
230

 
1,359

 
320

 
745

 
2,424

Accumulated impairment losses
(1,359
)
 

 
(745
)
 
(2,104
)
Assets held-for-sale (sold to ATMP JV during 2016)

 
(42
)
 

 
(42
)
Balance as of December 26, 2015

 
278

 

 
278

Adjustment to assets sold to ATMP JV

 
11

 

 
11

Balance as of December 31, 2016

 
289

 

 
289

Balance as of December 30, 2017

 
289

 

 
289

Goodwill, gross
1,359

 
289

 
745

 
2,393

Accumulated impairment losses
$
(1,359
)
 
$

 
$
(745
)
 
$
(2,104
)

As a result of the decision to form the JVs with TFME in 2015, the balance sheet as of December 26, 2015 reflects held-for-sale accounting of the ATMP assets and liabilities which required reclassification of such financial amounts to current assets and current liabilities. Asset balances reclassified into other current assets included goodwill of $42 million. During 2016, the formation of ATMP JV was completed and the actual goodwill assigned to ATMP JV was approximately $31 million.
In the fourth quarters of 2017 and 2016, the Company conducted its annual impairment tests of goodwill. The Company determined that the estimated fair value exceeded the carrying value of the reporting units, indicating that there was no goodwill impairment with respect to these reporting units.
Acquisition-Related Intangible Assets
As a part of the Company’s strategy to simplify and sharpen its investment focus, the Company decided to exit the dense server systems business, formerly SeaMicro, in the first quarter of 2015. As a result, the Company recorded a charge of $76 million in Restructuring and other special charges, net on the Company’s consolidated statements of operations during 2015. This charge consisted of an impairment charge of $62 million related to the acquired intangible assets. The Company concluded that the carrying value of the acquired intangible assets associated with its dense server systems business was fully impaired as the Company did not have plans to utilize the related freedom fabric technology in any of its future products nor did it have any plans at that time to monetize the associated intellectual property.
There were no unamortized balances of acquisition-related intangible assets as of December 30, 2017 and December 31, 2016. Amortization expense for acquisition-related intangible assets was zero, zero, and $3 million for the years 2017, 2016 and 2015, respectively.