GOODWILL AND OTHER INTANGIBLE ASSETS-NET

6 Months Ended

May 03, 2020

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

GOODWILL AND OTHER INTANGIBLE ASSETS-NET

(14)  Goodwill and Other Intangible Assets–Net

The changes in amounts of goodwill by operating segments were as follows in millions of dollars:

	Agriculture		Construction
	and Turf		and Forestry		Total
Goodwill at October 28, 2018	$	583	$	2,518	$	3,101
Translation adjustments and other		(2)		(74)		(76)
Goodwill at April 28, 2019	$	581	$	2,444	$	3,025
Goodwill at November 3, 2019	$	574	$	2,343	$	2,917
Translation adjustments and other		(9)		9
Goodwill at May 3, 2020	$	565	$	2,352	$	2,917

There were no accumulated impairment losses in the reported periods.

The components of other intangible assets were as follows in millions of dollars:

	May 3		November 3		April 28
	2020		2019		2019
Amortized intangible assets:
Customer lists and relationships	$	509	$	511	$	528
Technology, patents, trademarks, and other		1,006		1,028		1,059
Total at cost		1,515		1,539		1,587
Less accumulated amortization *		327		282		234
Total		1,188		1,257		1,353
Unamortized intangible assets:
In-process research and development		123		123		123
Other intangible assets – net	$	1,311	$	1,380	$	1,476

*   Accumulated amortization at May 3, 2020, November 3, 2019, and April 28, 2019 for customer lists and relationships totaled $93 million, $77 million, and $62 million and technology, patents, trademarks, and other totaled $234 million, $205 million, and $172 million, respectively.

The amortization of other intangible assets in the second quarter and the first six months of 2020 was $26 million and $51 million and for 2019 was $29 million and $57 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2020 – $50, 2021 – $100, 2022 – $99, 2023 – $97, and 2024 – $95.

As outlined in the 2019 Form 10-K, goodwill is tested for impairment annually and when events or circumstances change such that it is more likely than not that the fair value of a reporting unit is reduced below its carrying value. The annual measurement date is the end of the third quarter. In the second quarter of 2020, for each significant reporting unit the Company reviewed previous fair value analyses considering the uncertain and unknown economic effects of COVID. The Company concluded that an impairment was not required.

The intangible assets subject to amortization were also considered to determine if the carrying amount may not be recoverable. The Company concluded the carrying amount would be recovered based on current estimates. These positions will be evaluated in future quarters, as necessary.