GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for each of the Company’s reportable segments (see Note 15) for the fiscal years ended December 28, 2013 and December 29, 2012 were as follows (in millions):
|
| | | | | | | | | | | |
| IESD | | CATD | | Total |
Balance at December 31, 2011 | $ | 1,235 |
| | $ | 1,718 |
| | $ | 2,953 |
|
Foreign currency translation and other | (6 | ) | | 14 |
| | 8 |
|
Balance at December 29, 2012 | 1,229 |
| | 1,732 |
| | 2,961 |
|
Endosense S.A. | — |
| | 258 |
| | 258 |
|
Nanostim, Inc. | 149 |
| | — |
| | 149 |
|
Spinal Modulation, Inc. | 82 |
| | — |
| | 82 |
|
CardioMEMS, Inc. | 83 |
| | — |
| | 83 |
|
Foreign currency translation and other | (17 | ) | | 8 |
| | (9 | ) |
Balance at December 28, 2013 | $ | 1,526 |
| | $ | 1,998 |
| | $ | 3,524 |
|
The following table provides the gross carrying amount of other intangible assets and related accumulated amortization (in millions):
|
| | | | | | | | | | | | | | | |
| December 28, 2013 | | December 29, 2012 |
| Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
Definite-lived intangible assets: | |
| | |
| | |
| | |
|
Purchased technology and patents | $ | 986 |
| | $ | 393 |
| | $ | 947 |
| | $ | 336 |
|
Customer lists and relationships | 20 |
| | 13 |
| | 57 |
| | 36 |
|
Trademarks and tradenames | 22 |
| | 11 |
| | 22 |
| | 10 |
|
Licenses, distribution agreements and other | 4 |
| | 1 |
| | 6 |
| | 4 |
|
| $ | 1,032 |
| | $ | 418 |
| | $ | 1,032 |
| | $ | 386 |
|
Indefinite-lived intangible assets: | |
| | |
| | |
| | |
|
Acquired IPR&D | $ | 262 |
| | |
| | $ | 109 |
| | |
|
Trademarks and tradenames | 35 |
| | |
| | 49 |
| | |
|
| $ | 297 |
| | |
| | $ | 158 |
| | |
|
During 2013, the Company recognized impairment charges of $29 million associated with its indefinite-lived tradename and IPR&D assets in the Company's CATD segment. Additionally, the Company recognized a $13 million impairment charge primarily associated with customer relationship intangible assets. See Note 9 for further details discussing these charges. The gross carrying amounts and related accumulated amortization amounts for these impairment charges were written off accordingly.
Amortization expense was $79 million, $88 million and $93 million during fiscal years 2013, 2012 and 2011, respectively. The following table presents expected future amortization expense including amortization expense of expected indefinite-lived IPR&D amortization based on anticipated regulatory product approvals. Actual amounts of amortization expense may differ due to actual timing of regulatory approvals, additional intangible assets acquired and foreign currency translation impacts (in millions):
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | After |
| 2014 | | 2015 | | 2016 | | 2017 | | 2018 | | 2018 |
Amortization expense | $ | 90 |
| | $ | 95 |
| | $ | 101 |
| | $ | 93 |
| | $ | 87 |
| | $ | 410 |
|
