Note 11 Goodwill and other intangible assets

Changes in “Goodwill” were as follows:

($ in millions)

Discrete
Automation and Motion

Low
Voltage
Products

Process
Automation

Power
Products

Power
Systems

Corporate and Other

Total

(1)

Amounts include adjustments arising during the twelve-month measurement period subsequent to the respective acquisition date.

Cost at January 1, 2013

3,420

3,147

1,140

734

1,762

41

10,244

Accumulated impairment charges

(18)

(18)

Balance at January 1, 2013

3,420

3,147

1,140

734

1,762

23

10,226

Goodwill acquired during the year(1)

485

(45)

85

525

Goodwill allocated to disposals

(9)

(2)

(11)

Exchange rate differences

18

(43)

6

2

(53)

(70)

Balance at December 31, 2013

3,914

3,059

1,229

736

1,709

23

10,670

Goodwill acquired during the year(1)

(52)

1

24

9

27

9

Goodwill allocated to disposals

(181)

(19)

(7)

(27)

(234)

Exchange rate differences and other

(92)

(172)

(60)

(25)

(42)

(1)

(392)

Balance at December 31, 2014

3,770

2,707

1,174

720

1,660

22

10,053

In 2014, goodwill allocated to disposals primarily related to the divestments of the Meyer Steel Structures and heating, ventilation and air conditioning (HVAC) businesses of Thomas & Betts included in the Low Voltage Products division.

In 2013, goodwill acquired primarily related to Power-One, acquired in July 2013, which was allocated to the Discrete Automation and Motion operating segment.

Intangible assets other than goodwill consisted of the following:

 

2014

2013

December 31, ($ in millions)

Gross carrying
amount

Accumulated
amortization

Net carrying
amount

Gross carrying
amount

Accumulated
amortization

Net carrying
amount

Capitalized software for internal use

719

(599)

120

767

(618)

149

Capitalized software for sale

405

(354)

51

432

(384)

48

Intangibles other than software:

 

 

 

 

 

 

Customer-related

2,618

(623)

1,995

2,773

(481)

2,292

Technology-related

607

(304)

303

867

(374)

493

Marketing-related

314

(120)

194

400

(99)

301

Other

72

(33)

39

63

(49)

14

Total

4,735

(2,033)

2,702

5,302

(2,005)

3,297

Additions to intangible assets other than goodwill consisted of the following:

($ in millions)

2014

2013

Capitalized software for internal use

52

66

Capitalized software for sale

28

26

Intangibles other than software:

 

 

Customer-related

82

Technology-related

110

Marketing-related

16

Other

16

Total

96

300

Intangible assets from business combinations in 2014 were not significant. Included in the additions of $300 million in 2013 were the following intangible assets other than goodwill related to business combinations:

2013, ($ in millions)

Amount
acquired

Weighted-average
useful life

(1)

Includes the fair value of order backlog acquired in business combinations.

Customer-related(1)

82

11 years

Technology-related

108

4 years

Marketing-related

16

10 years

Total

206

7 years

Amortization expense of intangible assets other than goodwill consisted of the following:

($ in millions)

2014

2013

2012

Capitalized software for internal use

72

81

79

Capitalized software for sale

20

34

38

Intangibles other than software

362

361

332

Total

454

476

449

In 2014, 2013 and 2012, impairment charges on intangible assets other than goodwill were not significant.

At December 31, 2014, future amortization expense of intangible assets other than goodwill is estimated to be:

($ in millions)

 

2015

404

2016

362

2017

275

2018

191

2019

165

Thereafter

1,305

Total

2,702