Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table summarizes changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011, by reportable segment:



	Balance as of December 31, 2012		Goodwill Adjustments and Acquisitions			Balance as of December 31, 2011		Goodwill Adjustments and Acquisitions			Balance as of December 31, 2010
Agriculture	$	231	$	(1	)	$	232	$	4		$	228
Electronics & Communications	149		—			149		32			117
Industrial Biosciences	890		24			866		866			—
Nutrition & Health	2,314		(8		)	2,322		1,898			424
Performance Chemicals	185		—			185		—			185
Performance Coatings	—		(809		)	809		—			809
Performance Materials	401		(3		)	404		(6		)	410
Safety & Protection	446		—			446		2			444
Total	$	4,616	$	(797	)	$	5,413	$	2,796		$	2,617

Changes in goodwill in 2012 primarily relate to goodwill associated with the Performance Coatings business that has been reclassified as held for sale (see Note 2). Changes in goodwill in 2011 primarily relate to the goodwill associated with the Danisco acquisition (see Note 4). In 2012 and 2011, the company performed impairment tests for goodwill and determined that no goodwill impairments existed.

Other Intangible Assets

The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets by major class:



	December 31, 2012							December 31, 2011
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Intangible assets subject to amortization (Definite-lived)
Customer lists	$	1,847	$	(330	)	$	1,517	$	1,841	$	(220	)	$	1,621
Patents	525		(127		)	398		518		(77		)	441
Purchased and licensed technology	1,929		(1,016		)	913		1,854		(878		)	976
Trademarks	57		(29		)	28		57		(25		)	32
Other¹	206		(98		)	108		330		(151		)	179
	4,564		(1,600		)	2,964		4,600		(1,351		)	3,249
Intangible assets not subject to amortization (Indefinite-lived)
In-process research and development	62		—			62		70		—			70
Microbial cell factories²	306		—			306		306		—			306
Pioneer germplasm³	975		—			975		975		—			975
Trademarks/tradenames	819		—			819		813		—			813
	2,162		—			2,162		2,164		—			2,164
Total	$	6,726	$	(1,600	)	$	5,126	$	6,764	$	(1,351	)	$	5,413


^1.	Primarily consists of sales and grower networks, marketing and manufacturing alliances and noncompetition agreements.

^2.

Microbial cell factories, derived from natural microbes, are used to sustainably produce enzymes, peptides and chemicals using natural metabolic processes. The company recognized the microbial cell factories as an intangible asset upon the acquisition of Danisco. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual, or other factors which limit its useful life.

^3.

Pioneer germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The company recognized germplasm as an intangible asset upon the acquisition of Pioneer. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual, or other factors which limit its useful life.

The aggregate pre-tax amortization expense from continuing operations for definite-lived intangible assets was $312, $253 and $155 for 2012, 2011 and 2010, respectively. The estimated aggregate pre-tax amortization expense from continuing operations for 2013, 2014, 2015, 2016 and 2017 is $302, $333, $345, $301 and $173, respectively, which are primarily reported in cost of goods sold and other operating charges.

- 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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