Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the nine months ended September 30, 2016 are as follows (in millions):



Balance as of December 31, 2015	$	18,026
Goodwill acquired	56
Effect of currency translation adjustment	3
Balance as of September 30, 2016	$	18,085

Intangible assets consist of the following (in millions):



		September 30, 2016							December 31, 2015
	Weighted-Average Remaining Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Acquired users	5.0	$	2,056	$	(604	)	$	1,452	$	2,056	$	(382	)	$	1,674
Acquired technology	3.8	915		(462		)	453		831		(310		)	521
Acquired patents	6.1	785		(399		)	386		785		(333		)	452
Trade names	3.4	629		(265		)	364		629		(163		)	466
Other	3.5	162		(115		)	47		162		(89		)	73
Total finite-lived intangible assets	4.7	$	4,547	$	(1,845	)	$	2,702	$	4,463	$	(1,277	)	$	3,186

Indefinite-lived intangible assets:
In-process research and development (IPR&D)		$	—	$	—		$	—	$	60	$	—		$	60

Total intangible assets		$	4,547	$	(1,845	)	$	2,702	$	4,523	$	(1,277	)	$	3,246

We completed the IPR&D and reclassified it from indefinite-lived intangible asset to acquired technology in March 2016. We also began amortizing the balance over its estimated useful life.

Amortization expense of intangible assets was $195 million and $568 million for the three and nine months ended September 30, 2016, respectively, and $180 million and $539 million for the three and nine months ended September 30, 2015, respectively.

As of September 30, 2016, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):



The remainder of 2016	$	182
2017	681
2018	614
2019	522
2020	357
Thereafter	346
Total	$	2,702

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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