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Other Intangible Assets
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Other Intangible Assets
8.

OTHER INTANGIBLE ASSETS

Other intangible assets consisted of the following:

 

December 31, 2014    Gross Cost      Accumulated
Amortization
    Net Cost  

Technologies & licences

     619         (519     100   

Contractual customer relationships

     4         (4     —     

Purchased software

     373         (302     71   

Construction in progress

     22         —          22   

Other intangible assets

     66         (66     —     
  

 

 

    

 

 

   

 

 

 

Total

     1,084         (891     193   
  

 

 

    

 

 

   

 

 

 
December 31, 2013    Gross Cost      Accumulated
Amortization
    Net Cost  

Technologies & licences

     621         (489     132   

Contractual customer relationships

     5         (5     —     

Purchased software

     338         (290     48   

Construction in progress

     37         —          37   

Other intangible assets

     66         (66     —     
  

 

 

    

 

 

   

 

 

 

Total

     1,067         (850     217   
  

 

 

    

 

 

   

 

 

 

The line “Construction in progress” in the table above includes internally developed software under construction and software not ready for use. The line “Other intangible assets” consists primarily of internally developed software.

The amortization expense on capitalized software costs in 2014, 2013 and 2012 was $9 million, $17 million and $38 million, respectively.

During the third quarter of 2014, the Company tested the dedicated long-lived assets of DCG reporting unit for impairment. The result was that all dedicated intangible assets, composed of acquired technologies, and amounting to $23 million, were fully impaired due to the fact that their projected cash flows, over their remaining useful life, were less than their carrying value. The current DCG plan has been impacted by faster-than-expected revenue decline of legacy products and slower than anticipated customer transition to new key technologies.

The amortization expense in 2014, 2013 and 2012 was $61 million, $72 million and $177 million, respectively.

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

 

Year

  

2015

     64   

2016

     54   

2017

     36   

2018

     19   

2019

     10   

Thereafter

     10   
  

 

 

 

Total

     193