GOODWILL AND OTHER INTANGIBLE ASSETS-NET

9 Months Ended

Jul. 31, 2013

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

(13) The changes in amounts of goodwill by operating segments were as follows in millions of dollars:

	Agriculture and Turf			Construction and Forestry			Total
Balance October 31, 2011:
Goodwill	$	701		$	615		$	1,316
Less accumulated impairment losses	316						316
Goodwill-net	385			615			1,000
Translation adjustments	(19		)	(47		)	(66		)
Balance July 31, 2012:
Goodwill	682			568			1,250
Less accumulated impairment losses	316						316
Goodwill-net	$	366		$	568		$	934
Balance October 31, 2012:
Goodwill	$	686		$	584		$	1,270
Less accumulated impairment losses	349						349
Goodwill-net	337			584			921
Translation adjustments	(5		)	8			3
Balance July 31, 2013:
Goodwill	681			592			1,273
Less accumulated impairment losses	349						349
Goodwill-net	$	332		$	592		$	924

The components of other intangible assets were as follows in millions of dollars:

	Useful Lives *	July 31		October 31		July 31
	Years	2013		2012		2012
Amortized intangible assets:
Customer lists and relationships	14	$	73	$	99	$	100
Technology, patents, trademarks and other	20	93		109		105
Total at cost		166		208		205
Less accumulated amortization **		89		107		101
Total		77		101		104
Unamortized intangible assets:
Licenses		4		4		4
Other intangible assets-net		$	81	$	105	$	108

* Weighted-averages

** Accumulated amortization at July 31, 2013, October 31, 2012 and July 31, 2012 for customer lists and relationships totaled $50 million, $60 million and $56 million and technology, patents, trademarks and other totaled $39 million, $47 million and $45 million, respectively.

The amortization of other intangible assets in the third quarter and the first nine months of 2013 was

$5 million and $17 million and for 2012 was $5 million and $14 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2013 - $3, 2014 - $11, 2015 - $10, 2016 - $10 and 2017 - $8.

- 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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