Goodwill And Other Intangibles

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

Purchases of businesses are accounted for under the acquisition method, with substantially all goodwill assigned to the reporting unit that acquires the business. Under an impairment test performed annually, if the carrying amount of a reporting unit exceeds its estimated fair value, impairment is recognized to the extent that the carrying amount of the unit's goodwill exceeds the implied fair value of the goodwill. Fair values of reporting units are Level 3 measures which are estimated generally using an income approach that discounts future cash flows using risk-adjusted interest rates, as well as earnings multiples or other techniques as warranted. Fair values are subject to changes in underlying economic conditions.

The change in the carrying value of goodwill by business segment follows:



	Automation Solutions			Climate Technologies		Tools & Home Products		Commercial & Residential Solutions
	Automation Solutions			Climate Technologies		Tools & Home Products		Commercial & Residential Solutions		Total
Balance, September 30, 2016	$	3,160		553		196		749		3,909
Acquisitions	1,486			—		—		—		1,486
Divestitures	0			—		(142	)	(142	)	(142	)
Foreign currency translation and other	58			2		3		5		63
Balance, September 30, 2017	4,704			555		57		612		5,316
Acquisitions	696			118		374		492		1,188
Foreign currency translation and other	(45		)	(3	)	(1	)	(4	)	(49	)
Balance, September 30, 2018	$	5,355		670		430		1,100		6,455

The gross carrying amount and accumulated amortization of identifiable intangible assets by major class follow:



	Customer Relationships			Intellectual Property		Capitalized Software		Total
	2017		2018	2017	2018	2017	2018	2017	2018
Gross carrying amount	$	1,392	1,968	1,012	1,469	1,137	1,230	3,541	4,667
Less: Accumulated amortization	361		451	435	544	855	921	1,651	1,916
Net carrying amount	$	1,031	1,517	577	925	282	309	1,890	2,751

Intangible asset amortization expense for the major classes included above for 2018, 2017 and 2016 was $314, $222 and $177, respectively. Based on intangible asset balances as of September 30, 2018, amortization expense is expected to approximate $338 in 2019, $308 in 2020, $280 in 2021, $235 in 2022 and $222 in 2023.

The increase in goodwill and intangibles is primarily due to acquisitions. See Note 3.

- 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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