GOODWILL AND OTHER INTANGIBLE ASSETS-NET

9 Months Ended

Jul. 31, 2015

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		Construction
	and Turf		and Forestry		Total
Balance October 31, 2013:
Goodwill	$	302	$	603	$	905
Less accumulated impairment losses		60				60
Goodwill-net		242		603		845

Divestitures		(60)				(60)
Translation adjustments and other				(15)		(15)

Balance July 31, 2014:
Goodwill		242		588		830
Less accumulated impairment losses *
Goodwill-net	$	242	$	588	$	830

Balance October 31, 2014:
Goodwill	$	235	$	556	$	791
Less accumulated impairment losses *
Goodwill-net		235		556		791

Translation adjustments		(17)		(58)		(75)

Balance July 31, 2015:
Goodwill-net	$	218	$	498	$	716

* Accumulated impairment losses were reduced by $60 million related to the divestiture of the Water operations, which occurred in May 2014 (see Note 18).

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


	Useful Lives *	July 31		October 31		July 31
	(Years)	2015		2014		2014
Amortized intangible assets:
Customer lists and relationships	15	$	19	$	20	$	20
Technology, patents, trademarks and other	18		91		90		88
Total at cost			110		110		108
Less accumulated amortization **			52		45		43
Total			58		65		65
Unamortized intangible assets:
Licenses ***					4		4
Other intangible assets-net		$	58	$	69	$	69

* Weighted-averages

** Accumulated amortization at July 31, 2015, October 31, 2014 and July 31, 2014 for customer lists and relationships totaled $10 million, $9 million and $9 million, respectively, and technology, patents, trademarks and other totaled $42 million, $36 million and $34 million, respectively.

*** Licenses were reduced by $4 million related to the divestiture of the Crop Insurance operations, which occurred in March 2015 (see Note 19).

The amortization of other intangible assets in the third quarter and the first nine months of 2015 was $3 million and $8 million and for 2014 was $3 million and $8 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2015 - $2, 2016 - $10, 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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