GOODWILL AND OTHER INTANGIBLE ASSETS-NET

12 Months Ended

Oct. 31, 2014

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

17. GOODWILL AND OTHER INTANGIBLE ASSETS-NET

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

	Agriculture			Construction
	and			and
	Turf			Forestry			Total
Balance at October 31, 2012		$	686		$	584	$	1,270
Less accumulated impairment losses		349					349
Net balance		337			584		921
Reclassification to assets held for sale**		(395)					(395)
Acquisition*		13					13
Translation adjustments and other		(2)			19		17
Balance at October 31, 2013		302			603		905
Less accumulated impairment losses**		60					60
Net balance		242			603		845
Divestiture***		(60)					(60)
Translation adjustments and other		(7)			(47)		(54)
Balance at October 31, 2014		235			556		791
Less accumulated impairment losses***
Goodwill		$	235		$	556	$	791

* See Note 4.

** Accumulated impairment losses were also reduced by $289 million related to Landscapes reclassification to held for sale (see Note 4).

*** Accumulated impairment losses were also reduced by $60 million related to the sale of the Water operations (see Note 4).

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

	Useful Lives* (Years)	2014		2013
Amortized intangible assets:
Customer lists and relationships	15	$	20	$	20
Technology, patents, trademarks and other	19	90		88
Total at cost		110		108
Less accumulated amortization**		45		35
Total		65		73
Unamortized intangible assets:
Licenses		4		4
Other intangible assets-net		$	69	$	77

* Weighted-averages

** Accumulated amortization at 2014 and 2013 for customer lists and relationships was $9 million and $8 million and technology, patents, trademarks and other was $36 million and $27 million, respectively.

Other intangible assets are stated at cost less accumulated amortization. The amortization of other intangible assets in 2014, 2013 and 2012 was $11 million, $22 million and $21 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: 2015 - $10, 2016 - $9, 2017 - $9, 2018 – $5 and 2019 - $5.

- 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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