Goodwill and Other Identifiable Intangible Assets

3 Months Ended

Mar. 30, 2013

Goodwill and Other Identifiable Intangible Assets

7.	Goodwill and Other Identifiable Intangible Assets

The changes in the carrying amount of goodwill by segment were as follows:


In millions	December 31, 2012		Acquisitions/ divestitures			Foreign currency translation/other			March 30, 2013

Water & Fluid Solutions	$	2,410	$	—		$	(21	)	$	2,389
Valves & Controls		1,334		—			—			1,334
Technical Solutions		1,151		(5	)		(2	)		1,144

Total goodwill	$	4,895	$	(5	)	$	(23	)	$	4,867

Identifiable intangible assets consisted of the following:


	March 30, 2013						December 31, 2012
In millions	Cost		Accumulated amortization		Net		Cost		Accumulated amortization		Net

Finite-life intangibles
Customer relationships	$	1,269	$	(172)	$	1,097	$	1,277	$	(153)	$	1,124
Trade names		2		(1)		1		1		—		1
Proprietary technology		262		(63)		199		264		(58)		206
Backlog		41		(31)		10		41		(18)		23

Total finite-life intangibles	$	1,574	$	(267)	$	1,307	$	1,583	$	(229)	$	1,354

Indefinite-life intangibles
Trade names		552		—		552		556		—		556

Total intangibles, net	$	2,126	$	(267)	$	1,859	$	2,139	$	(229)	$	1,910

Intangible asset amortization expense was approximately $42 million and $10 million for the three months ended March 30, 2013 and March 31, 2012, respectively.

In the fourth quarter of 2012, we recorded an impairment charge for trade name intangible assets of $49 million and $12 million in Water & Fluid Solutions and Technical Solutions, respectively.

Estimated future amortization expense for identifiable intangible assets during the remainder of 2013 and the next five years is as follows:


	Q2-Q4
In millions	2013		2014		2015		2016		2017		2018

Estimated amortization expense	$	93	$	114	$	113	$	112	$	111	$	108

- 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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