Analyzing Apple's Intangibles Disclosures Required: 1. What was the total amount of intangible assets that Apple reported at the end of its 2017 fiscal year, and what was the amount of each component? 2. Do you think that Apple has additional intangible assets that are not recorded on the balance sheet? Why? How would this issue affect your understanding of the company's financial performance? 3. What is the average remaining useful life of the intangible assets with a finite life? 4. Why does Apple amortize some of its intangible assets but not others? How much amortization expense does Apple expect to recognize over the next 5 years? Apple Inc. Amortization expense related to acquired intangible assets was $1.2 billion, $1.5 billion and $1.3 bilion in 2017,2016 and 2015 , respectivety. As of September 30,2017 , the remaining weighted-average amortization period for acquired intangible assets is 3.4 years The expected annual amortzation expense related to acquired intangible assets as of September 30,2017 , is as follows (in milions): (in mulions, except number of thares which are retected of thousands and par vulue) \begin{tabular}{|c|c|c|c|c|c|} \hline Current assets: & \multirow{2}{*}{ As5ets: } & \multicolumn{2}{|c|}{\begin{tabular}{l} Septenter 3h, \\ abin \end{tabular}} & \multicolumn{2}{|r|}{\begin{tabular}{l} Septemiber 24, \\ 2056 \end{tabular}} \\ \hline & & & & & \\ \hline Cash and cash equevalents & & 3 & 2049 & 5 & 20.454 \\ \hline Short-term marketabie securties & & & 53,002 & & th 671 \\ \hline Accounts roceivabie, less alowances of 558 and 553 , respectively & & & 17.174 & & 15,754 \\ \hline inventories: & & & 4955 & & 2,132 \\ \hline Vender non-trade receivables & & & 17,700 & & 12545 \\ \hline Other current assets & & & 1395 & & a.263 \\ \hline Total current assets & & 4 & 128,645 & & 100.860 \\ \hline Long-term marketable secirities & & & 194714 & & 17040 \\ \hline Property, plant and equipment, net & & & 33,733 & & 270+0 \\ \hline Goodnill & & & 5.717 & & 3,414 \\ \hline Acquired intangible assets, net. & & & 2299 & & \\ \hline Other non-current astects & & & 10.162 & & 0.75 \\ \hline Total assets & & 5 & 35,312 & 5 & \\ \hline \end{tabular} LIABILITIES AND SHAREHOL DERS EOUTY: Current liabilities: Accounts payabh: Accrued expenses Deferred revenue