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Goodwill and Other Intangible Assets, Net
12 Months Ended
Dec. 31, 2011
Goodwill and Other Intangible Assets, Net [Abstract]  
Goodwill and Other Intangible Assets, Net NOTE 13 Goodwill and Other Intangible Assets, Net

NOTE 13

Goodwill and Other Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2011 and 2010 by segment are as follows:

 

 

                                                   
     Industrial
Process
  Motion
Technologies
  Interconnect
Solutions
  Control
Technologies
  Total

Goodwill – January 1, 2010

    $ 184       $ 52       $ 72       $ 198       $ 506  

Goodwill acquired

      3                                 3  

Foreign currency

      1         (4 )       (2 )               (5 )
                                                   

Goodwill – December 31, 2010

      188         48         70         198         504  

Goodwill acquired

      8                 3                 11  

Adjustments to purchase price allocations

      (3 )                               (3 )

Foreign currency

              (1 )       (1 )               (2 )
                                                   

Goodwill – December 31, 2011

    $ 193       $ 47       $ 72       $ 198       $ 510  
                                                   

 

Goodwill of $2,156 and $1,617 was disposed of during 2011 related to the Distribution of Exelis and Xylem, respectively. Goodwill of $76 was disposed of during 2010 related to the sale of CAS. See Note 4, “Discontinued Operations” for further information.

Based on the results of our annual impairment tests, performed as of October 1, 2011, and subsequent tests performed as of the Distribution Date for Exelis and Xylem, we determined that no impairment of goodwill existed as of either measurement date in 2011. However, future goodwill impairment tests could result in a charge to earnings. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be a potential impairment.

 

Other Intangible Assets

Information regarding our other intangible assets is as follows:

 

 

                               
     GROSS
CARRYING
AMOUNT
  ACCUMULATED
AMORTIZATION
  NET
INTANGIBLES

Customer relationships

    $ 77       $ (24 )     $ 53  

Proprietary technology

      20         (7 )       13  

Trademarks

      3         (1 )       2  

Patents and other

      5         (2 )       3  

Indefinite-lived intangibles

      17                 17  
                               

Intangibles – December 31, 2011

    $ 122       $ (34 )     $ 88  
                               

Customer and distributor relationships

    $ 74       $ (18 )     $ 56  

Proprietary technology

      20         (5 )       15  

Trademarks

      3         (1 )       2  

Patents and other

      4         (2 )       2  

Indefinite-lived intangibles

      17                 17  
                               

Intangibles – December 31, 2010

    $ 118       $ (26 )     $ 92  
                               

 

Indefinite-lived intangibles consist of brands and trademarks. Based on the results of its annual impairment tests, we determined that no impairment of the indefinite-lived intangibles existed as of the measurement date in 2011 or 2010. However, future impairment tests could result in a charge to earnings. We will continue to evaluate the indefinite-lived intangible assets on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be an indicator of potential impairment.

Customer relationships, proprietary technology, trademarks, and patents and other are amortized over weighted average lives of approximately 14.3 years, 14.1 years, 7.4 years and 11.7 years, respectively.

Amortization expense related to intangible assets for 2011, 2010 and 2009 was $10, $8 and $8, respectively. Estimated amortization expense for each of the five succeeding years is as follows:

 

 

           

Year

  Estimated
Amortization
Expense

2012

    $ 10  

2013

      9  

2014

      8  

2015

      7  

2016

      7