Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill



	Advanced Engineered Materials		Consumer Specialties		Industrial Specialties		Acetyl Intermediates		Total
	(In $ millions)
As of December 31, 2010
Goodwill	299		249		35		191		774
Accumulated impairment losses	—		—		—		—		—
Net book value	299		249		35		191		774
Acquisitions (Note 4)	—		—		1		—		1
Exchange rate changes	(5	)	(3	)	(1	)	(6	)	(15	)
As of December 31, 2011
Goodwill	294		246		35		185		760
Accumulated impairment losses	—		—		—		—		—
Net book value	294		246		35		185		760
Acquisitions (Note 4)	—		—		7		—		7
Exchange rate changes	3		3		—		4		10
As of December 31, 2012
Goodwill	297		249		42		189		777
Accumulated impairment losses	—		—		—		—		—
Net book value	297		249		42		189		777

In connection with the Company's annual goodwill impairment test performed during the three months ended September 30, 2012 using June 30 balances, the Company did not record an impairment loss related to goodwill as the estimated fair value for each of the Company's reporting units exceeded the carrying value of the underlying assets by a substantial margin. No events or changes in circumstances occurred during the three months ended December 31, 2012 that would indicate that the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period.

Intangible Assets, Net

Finite-lived intangibles are as follows:



	Licenses		Customer- Related Intangible Assets		Developed Technology		Covenants Not to Compete and Other		Total
	(In $ millions)
Gross Asset Value
As of December 31, 2010	30		526		20		25		601
Acquisitions (Note 4)	—		—		7		—		7
Exchange rate changes	2		(13	)	—		(1	)	(12	)
As of December 31, 2011	32		513		27		24		596
Acquisitions (Note 4)	—		4		3		8		15		⁽¹⁾
Exchange rate changes	—		8		—		—		8
As of December 31, 2012	32		525		30		32		619
Accumulated Amortization
As of December 31, 2010	(10	)	(395	)	(11	)	(14	)	(430	)
Amortization	(3	)	(52	)	(3	)	(4	)	(62	)
Exchange rate changes	—		14		—		—		14
As of December 31, 2011	(13	)	(433	)	(14	)	(18	)	(478	)
Amortization	(3	)	(40	)	(3	)	(5	)	(51	)
Exchange rate changes	—		(7	)	—		—		(7	)
As of December 31, 2012	(16	)	(480	)	(17	)	(23	)	(536	)
Net book value	16		45		13		9		83

______________________________


⁽¹⁾	Weighted average amortization period of intangible assets acquired was 8 years.

Indefinite-lived intangibles are as follows:



	Trademarks and Trade Names
	(In $ millions)
Gross Asset Value
As of December 31, 2010	81
Acquisitions (Note 4)	—
Exchange rate changes	(2	)
As of December 31, 2011	79
Acquisitions (Note 4)	2
Exchange rate changes	1
As of December 31, 2012	82

The Company’s trademarks and trade names have an indefinite life. For the year ended December 31, 2012, the Company did not renew or extend any intangible assets.

Estimated amortization expense for the succeeding five fiscal years is as follows:



	(In $ millions)
2013	32
2014	21
2015	10
2016	7
2017	6

In connection with the Company's annual indefinite-lived intangible assets impairment test performed during the three months ended September 30, 2012 using June 30 balances, the Company did not record an impairment loss to indefinite-lived intangible assets as the estimated fair value for each of the Company's indefinite-lived intangible assets exceeded the carrying value of the underlying asset by a substantial margin. No events or changes in circumstances occurred during the three months ended December 31, 2012 that would indicate that the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period.

- 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.

+ References+ Details