Goodwill And Acquired Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill And Acquired Intangible Assets

4. Goodwill and Acquired Intangible Assets

The following table identifies the activity relating to goodwill by operating segment:


In millions	Balance December 31, 2010		Additions		Currency Translation Adjustments		Balance June 30, 2011
Goodwill
Americas	$	85	$	347	$	1	$	433
EMEA		17		131		0		148
APJ		34		98		1		133

Total goodwill	$	136	$	576	$	2	$	714

The change in goodwill for the six months ended June 30, 2011 was primarily due to the acquisitions of Aprimo, Inc. ("Aprimo"), and Aster Data Systems, Inc. ("Aster Data") which were completed during the period.

Acquired Intangible Assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata's acquired intangible assets were as follows:


	Original Amortization Life (in Years)	June 30, 2011					December 31, 2010
In millions	Original Amortization Life (in Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Acquired intangible assets
Intellectual property/developed technology	5to 7		145		(14	)		18		(6	)
Customer relationships	4to 10		55		(3	)		0		0
Trademarks/trade names	5to 10		13		0			0		0
In-process research and development	5		8		0			0		0
Non-compete agreements	2		1		0			0		0

Total	2 to 10		222		(17	)		18		(6	)

The increase in acquired intangible assets since December 31, 2010 was due to developed technology, trademark/trade name, customer relationship, in-process research and development ("IPR&D"), and non-compete agreement assets added through the Aprimo and Aster Data acquisitions. The amortization of IPR&D intangible assets acquired as part of the Aster Data acquisition will not begin until the associated product development has been completed, which is currently estimated to be sometime in the next twelve months. Further information on the intangible assets acquired as part of this acquisition is included in Note 12.

The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is:


	Six Months Ended June 30, 2011		For the year ended (estimated)
In millions	Six Months Ended June 30, 2011		2011		2012		2013		2014		2015
Amortization expense	$	12	$	29	$	36	$	35	$	35	$	33

- 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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