GOODWILL AND OTHER INTANGIBLE ASSETS-NET

3 Months Ended

Jan. 28, 2018

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		Construction
	and Turf		and Forestry		Total
Goodwill at October 30, 2016	$	323	$	493	$	816
Translation adjustments		(5)		(2)		(7)
Goodwill at January 29, 2017	$	318	$	491	$	809

Goodwill at October 29, 2017	$	521	$	512	$	1,033
Acquisitions *				2,062		2,062
Divestitures **				(10)		(10)
Translation adjustments		9		18		27
Goodwill at January 28, 2018	$	530	$	2,582	$	3,112

* See Note 18.

** See Note 19.

There were no accumulated impairment losses in the reported periods.

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


	Useful Lives *	January 28		October 29		January 29
	(Years)	2018		2017		2017
Amortized intangible assets:
Customer lists and relationships	16	$	587	$	42	$	41
Technology, patents, trademarks, and other	18		1,050		139		127
Total at cost			1,637		181		168
Less accumulated amortization **			100		86		72
Total			1,537		95		96
Unamortized intangible assets:
In-process research and development			123		123
Other intangible assets – net		$	1,660	$	218	$	96

* Weighted-averages

** Accumulated amortization at January 28, 2018, October 29, 2017, and January 29, 2017 for customer lists and relationships totaled $21 million, $17 million, and $13 million and technology, patents, trademarks, and other totaled $79 million, $69 million, and $59 million, respectively.

The amortization of other intangible assets in the first quarter of 2018 and 2017 was $13 million and $5 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2018 – $89, 2019 – $117, 2020 – $104, 2021 – $100, and 2022 – $99.

- 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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