Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 were as follows:



In millions	Automotive OEM			Test & Measurement and Electronics			Food Equipment			Polymers & Fluids			Welding			Construction Products			Specialty Products			Total
Balance, December 31, 2015	$	277		$	1,355		$	259		$	894		$	261		$	516		$	877		$	4,439
2016 activity:
Acquisitions & divestitures	187			1			—			(2		)	—			(1		)	1			186
Foreign currency translation	(8		)	(20		)	(10		)	(3		)	(1		)	(7		)	(18		)	(67		)
Balance, December 31, 2016	456			1,336			249			889			260			508			860			4,558
2017 activity:
Acquisitions & divestitures	—			—			—			—			—			—			1			1
Foreign currency translation	32			36			20			30			12			22			41			193
Balance, December 31, 2017	$	488		$	1,372		$	269		$	919		$	272		$	530		$	902		$	4,752
Cumulative goodwill impairment charges, December 31, 2017	$	24		$	83		$	60		$	15		$	5		$	7		$	46		$	240

Intangible assets as of December 31, 2017 and 2016 were as follows:



	2017							2016
In millions	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizable intangible assets:
Customer lists and relationships	$	1,753	$	(1,182	)	$	571	$	1,744	$	(1,060	)	$	684
Trademarks and brands	761		(391		)	370		733		(344		)	389
Patents and proprietary technology	623		(473		)	150		620		(432		)	188
Other	474		(453		)	21		461		(444		)	17
Total amortizable intangible assets	3,611		(2,499		)	1,112		3,558		(2,280		)	1,278
Indefinite-lived intangible assets:
Trademarks and brands	160		—			160		185		—			185
Total intangible assets	$	3,771	$	(2,499	)	$	1,272	$	3,743	$	(2,280	)	$	1,463

The Company performed its annual impairment assessment of goodwill and indefinite-lived intangible assets in the third quarter of 2017, 2016 and 2015. The 2017 and 2016 assessments resulted in no impairment charges. In 2015, the Company recorded a $2 million indefinite-lived intangible asset impairment charge related to a brand in the Polymers & Fluids segment which had a fair value of $24 million and a carrying value of $26 million. The 2015 impairment was included in Amortization and impairment of intangible assets in the statement of income.

For the years ended December 31, 2017, 2016 and 2015, amortization expense and impairment of intangible assets was $206 million, $224 million and $233 million, respectively.

The estimated amortization expense of intangible assets for the future years ending December 31 is as follows:



In millions
2018	$	185
2019	163
2020	143
2021	124
2022	112

- 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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