Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

On April 24, 2012, Lorillard completed the Acquisition of the net assets of blu eCigs from BLEC, LLC, Intermark Brands, LLC and QSN Technologies, LLC. The preliminary purchase price allocation includes $64 million of goodwill and $58 million of intangible assets, which consisted primarily of trademarks.

Goodwill

Goodwill and the changes in goodwill during the period are as follows:

In millions	Total
Balance, December 2011	$	—
Purchase of blu eCigs net assets		64
Balance, September 2012	$	64

Intangible Assets

			September 2012
Dollars in millions	Weighted Average Amortization Period		Cost		Accumulated Amortization		Net Carrying Amount
Amortizable intangible assets:
Non-compete Agreement and Technology		5 years	$	1	$	—	$	1
Amortizable intangible assets, net								1
Indefinite-lived intangible assets:
Trademarks and trade names								57
Intangible assets, net							$	58

Intangible assets are amortized using the straight-line method.