Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Note 7. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the year ended December 31, 2012 were as follows (in millions):


Balance as of December 31, 2011	$	7,346
Goodwill acquired		3,230
Goodwill adjustment		(39	)

Balance as of December 31, 2012	$	10,537

Amounts of goodwill allocated to the Mobile and Home segments were not material. See Note 15 for further discussion of segment information.

Information regarding our acquisition-related intangible assets is as follows (in millions):


	As of December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Patents and developed technology	$	1,451	$	698	$	753
Customer relationships		1,288		573		715
Trade names and other		359		249		110

Total	$	3,098	$	1,520	$	1,578


	As of December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Patents and developed technology	$	7,310	$	1,323	$	5,987
Customer relationships		2,061		847		1,214
Trade names and other		576		304		272

Total	$	9,947	$	2,474	$	7,473

Patents and developed technology, customer relationships, and trade names and other have weighted-average useful lives from the date of purchase of 8.1 years, 6.6 years, and 5.8 years. Amortization expense of acquisition-related intangible assets for the years ended December 31, 2010, 2011, and 2012 was $314 million, $441 million, and $884 million. For the year ended December 31, 2012, net loss from discontinued operations included $70 million of amortization expense related to Home intangible assets.

As of December 31, 2012, expected amortization expense for acquisition-related intangible assets for each of the next five years and thereafter was as follows (in millions):


2013	$	1,188
2014		1,115
2015		956
2016		879
2017		821
Thereafter		2,514

	$	7,473

- 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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