|
8. Other Intangible Assets
Intangible assets consist of the following:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
(US$ in millions) |
|
2010 |
|
2009 |
|
|
Trademarks/brands, finite-lived |
|
$ |
127 |
|
$ |
130 |
|
|
Licenses |
|
|
11 |
|
|
12 |
|
|
Other |
|
|
115 |
|
|
72 |
|
| |
|
|
|
|
|
|
|
|
|
253 |
|
|
214 |
|
|
Less accumulated amortization: |
|
|
|
|
|
|
|
|
Trademarks/brands (1) |
|
|
(54 |
) |
|
(47 |
) |
|
Licenses |
|
|
(3 |
) |
|
(2 |
) |
|
Other |
|
|
(39 |
) |
|
(23 |
) |
| |
|
|
|
|
|
|
|
|
|
(96 |
) |
|
(72 |
) |
|
Trademarks/brands, indefinite-lived |
|
|
29 |
|
|
28 |
|
| |
|
|
|
|
|
|
Intangible assets, net of accumulated amortization |
|
$ |
186 |
|
$ |
170 |
|
| |
|
|
|
|
|
- (1)
- Bunge's Brazilian subsidiary's tax deductible goodwill in the agribusiness segment is in excess of its book goodwill. For financial reporting purposes, for other intangible assets acquired prior to 2009, before recognizing any income tax benefit of tax deductible goodwill in excess of its book goodwill in the consolidated statements of income and after the related book goodwill has been reduced to zero, any such remaining tax deductible goodwill in excess of its book goodwill is used to reduce other intangible assets to zero.
In 2010, Bunge assigned values totaling $52 million to other intangible assets acquired in business acquisitions. These assets primarily relate to land lease agreements acquired as part of the Moema acquisition (see Note 2 of the notes to the consolidated financial statements). These amounts were allocated $44 million, $7 million and $1 million to the sugar and bioenergy, fertilizer and edible oil products segments, respectively. Finite lives of these assets range from 2 to 20 years. In addition, $9 million of other intangible assets, net have been disposed of as part of the sale of the Brazilian fertilizer nutrients assets (see Note 3 of the notes to the consolidated financial statements) and $9 million of other intangible assets have been impaired (see Note 9 of the notes to the consolidated financial statements).
Bunge performed its annual impairment test in the fourth quarters of 2010, 2009 and 2008. There were no impairment of indefinite-lived intangible assets for the years ended December 31, 2010, 2009 and 2008.
The aggregate amortization expense was $23 million, $16 million and $11 million for the years ended December 31, 2010, 2009 and 2008, respectively. The annual estimated aggregate amortization expense for 2011 is approximately $23 million with approximately $22 million estimated per year for 2012 through 2015.
In 2009, Bunge acquired assets including $25 million of trademarks and brands, $1 million in licenses and $5 million of other intangible assets in its edible oils products segment and assigned lives to these assets ranging from 3 to 20 years. In addition, $5 million of licenses acquired in 2009 in its agribusiness segment were assigned a 50-year life. Also, as discussed in Note 2 of the notes to the consolidated financial statements, Bunge completed purchase price allocations in 2009 related to certain 2008 acquisitions, which resulted in the recording of $3 million and $4 million to licenses and other intangible assets, respectively, in the agribusiness segment and $19 million to other intangible assets in the milling products segment with lives ranging from 5 to 40 years. |