GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2011

Note 6 – GOODWILL AND INTANGIBLE ASSETS

Goodwill is tested for impairment at the reporting unit level as of October 1 of each year or if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The company has determined that the Lubrizol Additives operating segment constitutes a reporting unit, and that the Noveon consumer specialties product line, Estane engineered polymers business, TempRite engineered polymers business and performance coatings product line within the Lubrizol Advanced Materials operating segment constitute separate reporting units. The carrying amount of goodwill by reporting segment follows:


(In Millions of Dollars)	Lubrizol Advanced Materials		Lubrizol Additives		Total
Balance, December 31, 2010:
Goodwill	$	945.2	$	183.4	$	1,128.6
Accumulated impairment losses		(363.0)		-		(363.0)

		582.2		183.4		765.6

Goodwill acquired		67.1		-		67.1
Translation adjustments		19.9		1.7		21.6


Balance, June 30, 2011:
Goodwill		1,032.2		185.1		1,217.3
Accumulated impairment losses		(363.0)		-		(363.0)

	$	669.2	$	185.1	$	854.3

The company’s indefinite-lived intangible assets include certain trademarks that are tested for impairment each year as of October 1 or more frequently if impairment indicators arise. The following table shows the components of identifiable intangible assets:


			June 30, 2011				December 31, 2010
(In Millions of Dollars)	Weighted- Average Useful Life		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists		18 years	$	253.7	$	76.4	$	189.5	$	68.1
Technology		15 years		148.8		63.6		133.8		58.2
Trademarks		16 years		31.0		13.0		29.7		11.6
Patents		11 years		11.1		7.6		10.8		6.9
Other		8 years		1.2		0.6		1.2		0.5

Total amortized intangible assets				445.8		161.2		365.0		145.3
Non-amortized trademarks				105.9		-		79.7		-

Total			$	551.7	$	161.2	$	444.7	$	145.3

- 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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