Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and goodwill

A. Intangible assets

Intangible assets are comprised of the following:




		September 30, 2017
(Millions of dollars)	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	15	$	2,433	$	(1,077	)	$	1,356
Intellectual property	11	1,529		(812		)	717
Other	13	191		(89		)	102
Total finite-lived intangible assets	14	$	4,153	$	(1,978	)	$	2,175



		December 31, 2016
	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	15	$	2,378	$	(934	)	$	1,444
Intellectual property	11	1,496		(706		)	790
Other	14	192		(77		)	115
Total finite-lived intangible assets	14	$	4,066	$	(1,717	)	$	2,349

Amortization expense for the three and nine months ended September 30, 2017 was $82 million and $241 million, respectively. Amortization expense for the three and nine months ended September 30, 2016 was $82 million and $246 million, respectively. Amortization expense related to intangible assets is expected to be:



(Millions of dollars)

Remaining Three Months of 2017	2018	2019	2020	2021	Thereafter
$81	$319	$313	$302	$284	$876

B. Goodwill

No goodwill was impaired during the three or nine months ended September 30, 2017 or 2016.

The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2017 were as follows:




(Millions of dollars)	December 31, 2016			Other Adjustments ¹		September 30, 2017
Construction Industries
Goodwill	$	296		$	10	$	306
Impairments	(22		)	—		(22		)
Net goodwill	274			10		284
Resource Industries
Goodwill	4,110			111		4,221
Impairments	(1,175		)	—		(1,175		)
Net goodwill	2,935			111		3,046
Energy & Transportation
Goodwill	2,756			54		2,810
All Other ²
Goodwill	55			1		56
Consolidated total
Goodwill	7,217			176		7,393
Impairments	(1,197		)	—		(1,197		)
Net goodwill	$	6,020		$	176	$	6,196

¹ Other adjustments are comprised primarily of foreign currency translation.

²Includes All Other operating segments (See Note 15).

- 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.

+ References + Details