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