Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

The following table summarizes changes in the carrying amount of goodwill for the six month period ended June 30, 2011, by reportable segment. Changes in goodwill during the six month period ended June 30, 2011 primarily relate to the goodwill associated with the Danisco acquisition (see Note 2).



	June 30, 2011		Goodwill Adjustments and Acquisitions		December 31, 2010
Agriculture	$	234	$	6	$	228
Electronics & Communications	117		—		117
Industrial Biosciences	914		914		—
Nutrition & Health	2,437		2,013		424
Performance Chemicals	185		—		185
Performance Coatings	809		—		809
Performance Materials	410		—		410
Safety & Protection	444		—		444
Total	$	5,550	$	2,933	$	2,617

The gross carrying amounts and accumulated amortization of other intangible assets by major class are as follows:



	June 30, 2011							December 31, 2010
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Intangible assets subject to amortization (Definite-lived):
Customer lists	$	1,966	$	(189	)	$	1,777	$	525	$	(160	)	$	365
Patents	535		(49		)	486		118		(44		)	74
Purchased and licensed technology	1,638		(842		)	796		1,617		(765		)	852
Trademarks	57		(24		)	33		57		(22		)	35
Other ¹	367		(178		)	189		333		(163		)	170
	4,563		(1,282		)	3,281		2,650		(1,154		)	1,496

Intangible assets not subject to amortization (Indefinite-lived):
In-process research and development	72		—			72		—		—			—
Microbial cell factories ²	306		—			306		—		—			—
Pioneer germplasm ³	975		—			975		975		—			975
Trademarks/tradenames	860		—			860		233		—			233
	2,213		—			2,213		1,208		—			1,208
Total	$	6,776	$	(1,282	)	$	5,494	$	3,858	$	(1,154	)	$	2,704

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¹Primarily consists of sales and grower networks, marketing and manufacturing alliances and noncompetition agreements.

²Microbial cell factories, derived from natural microbes, are used to sustainably produce enzymes, peptides and chemicals using natural metabolic processes. The company recognized the microbial cell factories as an intangible asset upon the acquisition of Danisco. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual, or other factors which limit its useful life.

³Pioneer germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The company recognized germplasm as an intangible asset upon the acquisition of Pioneer. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual, or other factors which limit its useful life.

The aggregate pre-tax amortization expense for definite-lived intangible assets was $70 and $137 for the three and six month periods ended June 30, 2011, respectively, and $52 and $110 for the three and six month periods ended June 30, 2010, respectively. The estimated aggregate pre-tax amortization expense for 2011 and each of the next five years is approximately $283, $332, $331, $320, $288 and $200. Estimated aggregate pre-tax amortization expense includes approximately $115 of amortization expense in each of the next five years related to definite-lived intangible assets acquired as part of the Danisco transaction.

- 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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