Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill And Other Intangible Assets [Abstract]

12. Goodwill and Other Intangible Assets

Goodwill

The table below provides a summary of Devon's goodwill by assigned reporting unit.


	U.S.		Canada		EnLink		Total

	(In millions)
Balance as of December 31, 2012	$	2,644	$	3,033	$	402	$	6,079

Asset divestitures		(26)		-		-		(26)
Foreign currency translation adjustments		-		(195)		-		(195)
Balance as of December 31, 2013	$	2,618	$	2,838	$	402	$	5,858

Acquired during period		-		-		3,283		3,283
Asset divestitures		-		(706)		-		(706)
Impairment		-		(1,941)		-		(1,941)
Foreign currency translation adjustments		-		(191)		-		(191)
Balance as of December 31, 2014	$	2,618	$	-	$	3,685	$	6,303

Acquired During Period

Included in the assets Devon contributed to EnLink Holdings was $402 million of goodwill. The additional EnLink goodwill of $3.3 billion represents the goodwill recognized upon the formation of EnLink and General Partner as described in Note 2.

The General Partner’s and EnLink’s goodwill was recognized and assigned to the five reporting units as follows.


		Texas		Louisiana		Oklahoma		Ohio River Valley		General Partner		Total

	(In millions)
Balance as of December 31, 2013	$	326	$	-	$	76	$	-	$	-	$	402
Acquired during period		842		787		114		113		1,427		3,283
Balance as of December 31, 2014	$	1,168	$	787	$	190	$	113	$	1,427	$	3,685

Asset Divestitures

In conjunction with the asset divestitures in 2013 and 2014, Devon removed $26 million and $706 million of goodwill, respectively, which were allocated to these assets.

Impairment

Devon’s Canadian goodwill was originally recognized in 2001 as a result of a business combination consisting almost entirely of conventional gas assets that Devon no longer owns.

As a result of performing the goodwill impairment test described in Note 1, Devon concluded the implied fair value of its Canadian goodwill was zero as of December 31, 2014. This conclusion was largely based on the significant decline in benchmark oil prices, particularly after OPEC’s decision not to reduce its production targets that was announced in late November 2014. Consequently, in the fourth quarter of 2014, Devon wrote off its remaining Canadian goodwill and recognized a $1.9 billion impairment.

Other Intangible Assets

As of December 31, 2014, intangible assets associated with customer relationships had a gross carrying amount of $569 million and $36 million of accumulated amortization. The weighted-average amortization period for the customer relationships is 13.7 years. Amortization expense for intangibles was approximately $36 million for the year ended December 31, 2014. Other intangible assets are reported in other long-term assets in the accompanying consolidated balance sheets.

The following table summarizes the estimated aggregate amortization expense for the next five years.


Year	Amortization Amount
		(In millions)
2015	$	45
2016	$	45
2017	$	45
2018	$	45
2019	$	44

- 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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