Goodwill and Intangibles

Note 9—Goodwill and Intangibles

Goodwill

Changes in the carrying amount of goodwill were as follows:


	Millions of Dollars
	2011									2010
	E&P*			R&M*			Total			E&P*			R&M*			Total
Balance as of January 1
Goodwill	$	25,443			3,633			29,076			25,443			3,638			29,081
Accumulated impairment losses		(25,443	)		—			(25,443	)		(25,443	)		—			(25,443	)

		—			3,633			3,633			—			3,638			3,638
Goodwill allocated to assets held for sale or sold		—			(273	)		(273	)		—			—			—
Tax and other adjustments		—			(28	)		(28	)		—			(5	)		(5	)

Balance as of December 31
Goodwill		25,443			3,332			28,775			25,443			3,633			29,076
Accumulated impairment losses		(25,443	)		—			(25,443	)		(25,443	)		—			(25,443	)

	$	—			3,332			3,332			—			3,633			3,633

*	E&P represents continuing operations, and R&M represents discontinued operations.

Intangible Assets

Information at December 31 on the carrying value of intangible assets follows:


	Millions of Dollars
	Gross Carrying Amount
	2011		2010
Indefinite-Lived Intangible Assets
Trade names and trademarks	$	494		494
Refinery air and operating permits		207		245

	$	701		739

At year-end 2011, our amortized intangible asset balance was $44 million, compared with $62 million at year-end 2010. Amortization expense was not material for 2011 and 2010, and is not expected to be material in future years.

- 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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