Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

E. Goodwill and Other Intangible Assets

The following table details the changes in the carrying amount of goodwill:


	Alumina			Primary Metals			Global Rolled Products			Engineered Products and Solutions			Transportation and Construction Solutions			Corporate*			Total
Balance at December 31, 2013:
Goodwill	$	9		$	989		$	218		$	2,606		$	117		$	1,235		$	5,174
Accumulated impairment losses		-			(989	)		-			-			(28	)		(742	)		(1,759	)
		9			-			218			2,606			89			493			3,415
Acquisitions (F)		-			-			-			1,898			-			-			1,898
Divestitures (F)		(3	)		-			-			-			-			-			(3	)
Translation		2			-			(8	)		(46	)		(3	)		(8	)		(63	)
Balance at December 31, 2014:
Goodwill		8			989			210			4,458			114			1,227			7,006
Accumulated impairment losses		-			(989	)		-			-			(28	)		(742	)		(1,759	)
		8			-			210			4,458			86			485			5,247
Acquisitions (F)		-			-			-			261			-			-			261
Divestitures (F)		-			-			(1	)		-			-			-			(1	)
Impairment		-			-			-			-			(25	)		-			(25	)
Translation		(2	)		-			(8	)		(59	)		(3	)		(9	)		(81	)
Balance at December 31, 2015:
Goodwill		6			989			201			4,660			111			1,218			7,185
Accumulated impairment losses		-			(989	)		-			-			(53	)		(742	)		(1,784	)
		6			-			201			4,660			58			476			5,401

As of December 31, 2015, the amount reflected in Corporate is allocated to four of Alcoa’s five reportable segments ($146 to Alumina, $59 to Global Rolled Products, $253 to Engineered Products and Solutions, and $18 to Transportation and Construction Solutions) included in the table above for purposes of impairment testing (see Note A). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the four reportable segments.

In 2015 and 2013, Alcoa recognized an impairment of goodwill in the amount of $25 and $1,731 ($1,719 after noncontrolling interest), respectively, related to the annual impairment review of the soft alloy extrusion business in Brazil (included in the Transportation and Construction Solutions segment) and the Primary Metals segment, respectively, (see Goodwill and Other Intangible Assets policy in Note A).

Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows:


December 31, 2015	Gross carrying amount		Accumulated amortization
Computer software	$	969	$	(801	)
Patents and licenses		135		(104	)
Other intangibles*		988		(74	)
Total amortizable intangible assets		2,092		(979	)
Indefinite-lived trade names and trademarks		45		-
Total other intangible assets	$	2,137	$	(979	)

*	As of December 31, 2015, Other intangibles include amounts related to the acquisitions of Firth Rixson, TITAL, and RTI (see Note F).


December 31, 2014	Gross carrying amount		Accumulated amortization
Computer software	$	973	$	(775	)
Patents and licenses		133		(98	)
Other intangibles*		493		(35	)
Total amortizable intangible assets		1,599		(908	)
Indefinite-lived trade names and trademarks		46		-
Total other intangible assets	$	1,645	$	(908	)

*	As of December 31, 2014, Other intangibles include amounts related to the acquisition of Firth Rixson (see Note F).

Computer software consists primarily of software costs associated with an enterprise business solution (EBS) within Alcoa to drive common systems among all businesses.

Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2015, 2014, and 2013 was $77, $69, and $73, respectively, and is expected to be in the range of approximately $75 to $85 annually from 2016 to 2020.

- 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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