Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table summarizes changes in the carrying amount of goodwill for the three months ended March 31, 2018 (Successor period):



(In millions)
Balance as of December 31, 2017	$	45,589
Currency translation adjustment	569
Measurement period adjustments - Merger	282
Measurement period adjustments - H&N Business	6
Balance as of March 31, 2018	$	46,446

Other Intangible Assets

The gross carrying amounts and accumulated amortization of other intangible assets by major class are as follows:



	Successor
(In millions)	March 31, 2018							December 31, 2017
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Intangible assets subject to amortization (Definite-lived):
Customer-related	$	9,590	$	(332	)	$	9,258	$	9,502	$	(186	)	$	9,316
Developed technology	4,479		(265		)	4,214		4,364		(144		)	4,220
Trademarks/trade names	1,112		(48		)	1,064		1,117		(26		)	1,091
Favorable supply contracts	475		(40		)	435		495		(17		)	478
Microbial cell factories	407		(7		)	400		397		(6		)	391
Other¹	386		(14		)	372		459		(10		)	449
Total other intangible assets with finite lives	16,449		(706		)	15,743		16,334		(389		)	15,945

Intangible assets not subject to amortization (Indefinite-lived):
In-process research and development ("IPR&D")	660		—			660		660		—			660
Germplasm²	6,265		—			6,265		6,265		—			6,265
Trademarks / trade names	4,825		—			4,825		4,856		—			4,856
Total other intangible assets	11,750		—			11,750		11,781		—			11,781
Total	$	28,199	$	(706	)	$	27,493	$	28,115	$	(389	)	$	27,726


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

^2.

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 $315 million and $51 million for the three months ended March 31, 2018 and 2017, respectively. The estimated aggregate pre-tax amortization expense from continuing operations for the remainder of 2018 and each of the next five years is approximately $950 million, $1,254 million, $1,244 million, $1,228 million, $1,221 million and $1,207 million, respectively.

- 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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