Goodwill and Other Intangibles, net

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The balances and changes in Other Intangibles, net are as follows (in millions):



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets
Current technology	$	24	$	(23	)	$	1
Trade names	41		(41		)	—
Unpatented technology	242		(205		)	37
Patents and patent rights	235		(215		)	20
Customer relationships	481		(240		)	241
Total	$	1,023	$	(724	)	$	299
Amortization expense for the year ended December 31, 2017			$	184



	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets
Current technology	$	24	$	(21	)	$	3
Trade names	40		(40		)	—
Unpatented technology	241		(146		)	95
Patent and patent rights	238		(161		)	77
Customer relationships	478		(173		)	305
Total	$	1,021	$	(541	)	$	480
Amortization expense for the year ended December 31, 2016			$	229



Estimated amortization expense for future periods is as follows (in millions):	Amount
For the year ended December 31, 2018	$	96
For the year ended December 31, 2019	83
For the year ended December 31, 2020	39
For the year ended December 31, 2021	37
For the year ended December 31, 2022	31
Thereafter	13
Total	$	299

There was no impairment of Other Intangible assets recorded during fiscal 2017. Impairment of Other Intangible assets of $30 million was recorded during fiscal 2016 related to the wireless LAN business divestiture which is reflected within the EVM segment.

Changes in the net carrying value amount of goodwill were as follows (in millions):



	Total
Goodwill as of December 31, 2015	$	2,490
Impairment charge – wireless LAN divestiture	(32		)
Goodwill as of December 31, 2016	2,458
Foreign exchange impact	7
Goodwill as of December 31, 2017	$	2,465

As of December 31, 2017, goodwill totaled $2.3 billion for the EVM reportable segment and $154 million for the AIT reportable segment.

There was no goodwill impairment recorded in fiscal 2017. Goodwill impairment of $32 million was recorded during fiscal 2016 related to the wireless LAN business divestiture which is reflected within the EVM segment.

The Company completed its annual goodwill impairment testing during the fourth quarter 2017. For all of the Company’s reporting units, the estimated fair values exceeded the carrying values ranging from approximately 20% to 90%.

- 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.

+ References + Details