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Goodwill and Purchased Intangible Assets
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Purchased Intangible Assets
4. GOODWILL AND PURCHASED INTANGIBLE ASSETS

Goodwill

The carrying amounts of goodwill by segment are included in the tables below. Foreign currency fluctuations are included within other adjustments.
 
January 1, 2016
 
 
 
 
 
 
 
December 31, 2016
In millions
Goodwill
 
Accumulated Impairment Losses
 
Total
 
Additions
 
Impairment
 
Other
 
Goodwill
 
Accumulated Impairment Losses
 
Total
Software
$
1,936


$
(7
)

$
1,929


$
9


$


$
(15
)

$
1,930


$
(7
)

$
1,923

Services
658




658








658




658

Hardware
162


(16
)

146








162


(16
)

146

Total goodwill
$
2,756


$
(23
)

$
2,733


$
9


$


$
(15
)

$
2,750


$
(23
)

$
2,727



 
January 1, 2015
 
 
 
 
 
 
 
December 31, 2015
In millions
Goodwill
 
Accumulated Impairment Losses
 
Total
 
Additions
 
Impairment
 
Other
 
Goodwill
 
Accumulated Impairment Losses
 
Total
Software
$
1,947

 
$
(7
)
 
$
1,940

 
$
2

 
$

 
$
(13
)
 
$
1,936

 
$
(7
)
 
$
1,929

Services
658

 

 
658

 

 

 

 
658

 

 
658

Hardware
162

 

 
162

 

 
(16
)
 

 
162

 
(16
)
 
146

Total goodwill
$
2,767

 
$
(7
)
 
$
2,760

 
$
2

 
$
(16
)
 
$
(13
)
 
$
2,756

 
$
(23
)
 
$
2,733



As of December 31, 2015, we determined that it was probable that we would dispose of our IPS business, which triggered an impairment assessment of the related assets which include long-lived assets and goodwill. We evaluated the carrying value of these assets compared to the fair value based on a market approach using an independent third-party market price and determined the goodwill associated with the Hardware reporting unit was impaired. The impairment of $16 million was recorded within other (expense), net in the Consolidated Statements of Operations for the year ended December 31, 2015. Refer to Note 2, "Business Combinations and Divestitures" for further discussion.

Purchased Intangible Assets

NCR’s purchased intangible assets were specifically identified when acquired, and are deemed to have finite lives. These assets are reported in intangibles, net in the Consolidated Balance Sheets. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below:
 
Amortization
Period
(in Years)
 
December 31, 2016
 
December 31, 2015
In millions
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Identifiable intangible assets
 
 
 
 
 
 
 
 
 
Reseller & customer relationships
1 - 20
 
$
656

 
$
(128
)
 
$
659

 
$
(92
)
Intellectual property
2 - 8
 
392

 
(302
)
 
392

 
(244
)
Customer contracts
8
 
89

 
(66
)
 
89

 
(46
)
Tradenames
2 - 10
 
73

 
(42
)
 
73

 
(33
)
Total identifiable intangible assets
 
 
$
1,210

 
$
(538
)
 
$
1,213

 
$
(415
)


The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:
 
 
For the year ended December 31, 2016
 
For the years ended December 31 (estimated)
In millions
 
 
2017
 
2018
 
2019
 
2020
 
2021
Amortization expense
 
$
123

 
$
116

 
$
85

 
$
75

 
$
57

 
$
49