GOODWILL AND OTHER INTANGIBLE ASSETS-NET

6 Months Ended

Apr. 30, 2014

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

(13) The changes in amounts of goodwill by operating segments were as follows in millions of dollars:

	Agriculture and Turf		Construction and Forestry		Total
Balance October 31, 2012:
Goodwill	$	686	$	584	$	1,270
Less accumulated impairment losses		349				349
Goodwill-net		337		584		921

Translation adjustments				2		2

Balance April 30, 2013:
Goodwill		686		586		1,272
Less accumulated impairment losses		349				349
Goodwill-net	$	337	$	586	$	923

Balance October 31, 2013:
Goodwill	$	302	$	603	$	905
Less accumulated impairment losses *		60				60
Goodwill-net		242		603		845

Reclassification to assets held for sale		(60)				(60)
Translation adjustments and other		1		(6)		(5)

Balance April 30, 2014:
Goodwill		243		597		840
Less accumulated impairment losses **
Goodwill-net	$	243	$	597	$	840

* Accumulated impairment losses were reduced by $289 million related to Landscapes reclassification to held for sale (see Note 18).

** Accumulated impairment losses were reduced by $60 million related to the Water operations reclassification to held for sale (see Note 19).

The components of other intangible assets were as follows in millions of dollars:

	Useful Lives *	April 30		October 31		April 30
	(Years)	2014		2013		2013
Amortized intangible assets:
Customer lists and relationships	15	$	20	$	20	$	99
Technology, patents, trademarks and other	18	87		88		110
Total at cost		107		108		209
Less accumulated amortization **		40		35		119
Total		67		73		90
Unamortized intangible assets:
Licenses		4		4		4
Other intangible assets-net		$	71	$	77	$	94

* Weighted-averages

** Accumulated amortization at April 30, 2014 and 2013 for customer lists and relationships totaled $8 million and $66 million and technology, patents, trademarks and other totaled $32 million and $53 million, respectively.

The amortization of other intangible assets in the second quarter and the first six months of 2014 was $3 million and $5 million and for 2013 was $5 million and $12 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2014 - $5, 2015 - $10, 2016 - $9, 2017 - $9 and 2018 - $5.

- 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