9.	OTHER INTANGIBLE ASSETS

Other intangible assets consisted of the following:

December 31, 2012

Gross Cost

Accumulated
Amortization

Net Cost

Technologies & licences

742

(630

)

112

Contractual customer relationships

(11

)

Purchased software

356

(312

)

Construction in progress

—

Other intangible assets

104

(88

)

Total

1,254

(1,041

)

213


December 31, 2011	Gross Cost		Accumulated Amortization			Net Cost
Technologies & licences		882		(723	)		159
Contractual customer relationships		488		(171	)		317
Purchased software		358		(291	)		67
Construction in progress		87		—			87
Other intangible assets		99		(84	)		15

Total		1,914		(1,269	)		645

The line “Construction in progress” in the table above includes internally developed software under construction and software not ready for use.

As described in Note 7, purchase price allocation on the integration of bTendo AMM business resulted in the recognition of technology for $6 million and in-process R&D for $4 million.

The line “Other intangible assets” consists primarily of internally developed software. The amortization expense on capitalized software costs in 2012, 2011 and 2010 was $38 million, $33 million and $30 million, respectively.

In December 2012, following the Company’s decision to exit ST-Ericsson by the end of 2013, an impairment test was performed on Wireless reporting unit, as detailed in Note 8. Prior to conducting the impairment test on goodwill, the Company evaluated the recoverability of the long-lived assets assigned to the Wireless reporting unit, including acquired technologies, contractual customer relationships and capitalized software. Recoverability of these intangible assets was assessed based on the undiscounted future cash flows expected to result from their use or potential sale. Based on management’s best estimates about future developments and scenarios of the Wireless business, as well as assumptions on alternative future use or sale, the Company concluded that the undiscounted future cash flows were less than the carrying value. Therefore, these intangible assets were considered to be impaired. The amount of the impairment loss was measured as the difference between the carrying amount of these assets and the fair value based on a discounted cash flow approach. The impairment on intangible assets totalled $312 million and was composed of $261 million impairment on Wireless customer relationships, $45 million impairment on Wireless capitalized software and $6 million impairment on acquired technology.

The amortization expense in 2012, 2011 and 2010 was $177 million, $211 million and $207 million, respectively.

The estimated amortization expense of the existing intangible assets for the following years is:


Year
2013			78
2014			51
2015			40
2016			28
2017			11
Thereafter			5
Total			213