Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

We evaluate goodwill and indefinite lived intangibles for impairment annually on October 1.

Goodwill

We performed our assessment as of October 1, 2014, and determined there was no impairment of goodwill. The total net carrying amount of goodwill was $2.8 billion at December 31, 2014, with $1.7 billion in our North America operating segment, $639 million in our EMEA operating segment, $449 million in our Asia operating segment and $4 million in our Latin America operating segment. At December 31, 2013 the total net carrying amount of goodwill was $1.7 billion, with $1.7 billion in our North America operating segment and $4 million in our Latin America operating segment.

The increase in carrying value of EMEA and Asia goodwill is driven by the Hefei Sanyo and Indesit acquisitions in 2014, net of foreign currency impact of $2 million and $28 million, respectively. Further discussion of these transactions can be found in our MD&A under "Hefei Sanyo Acquisition," “Indesit Acquisition” and in Note 2.

Other Intangible Assets

Based on the results of our annual assessment as of October 1, 2014, we determined that there were no impairments to our intangibles, with the exception of two European trademarks which had a pre-impairment carrying value of $30 million, where we recognized a $12 million impairment charge within selling, general and administrative expense during the fourth quarter 2014.

The following table summarizes other intangible assets at December 31, 2014 and 2013:



	2014							2013
Millions of dollars	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Other intangible assets, finite lives:
Customer relationships ⁽¹⁾	$	665	$	(163	)	$	502	$	289	$	(125	)	$	164
Patents and other ⁽²⁾	348		(104		)	244		128		(112		)	16
Total other intangible assets, finite lives	$	1,013	$	(267	)	$	746	$	417	$	(237	)	$	180
Trademarks, indefinite lives	2,057		—			2,057		1,522		—			1,522
Total other intangible assets	$	3,070	$	(267	)	$	2,803	$	1,939	$	(237	)	$	1,702

^{(1) Customer relationships have an estimated useful life of}⁴^to¹⁹^years.

^{(2) Patents and other intangibles have an estimated useful life of}⁴^to¹⁵^years.

The following table summarizes our future estimated amortization expense by year:



Millions of dollars
2015	$	78
2016	75
2017	72
2018	70
2019	67

- 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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