Goodwill and Other Intangible Assets (Notes)

9 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Effective October 1, 2015, the Company reorganized the reportable segments within its Building Efficiency business to align with its new management reporting structure and business activities. Historical information has been revised to reflect the new Building Efficiency reportable segments. Refer to Note 18, "Segment Information," of the notes to consolidated financial statements for further information.

The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the three month period ended September 30, 2015 and the nine month period ended June 30, 2016 were as follows (in millions):



			Business Acquisitions		Business Divestitures			Currency Translation and Other
	June 30,										September 30,
	2015										2015

Building Efficiency
Systems and Service North America	$	980	$	—	$	—		$	(2	)	$	978
Products North America	1,703		—		(3		)	1			1,701
Asia	401		—		—			(12		)	389
Rest of World	306		—		—			4			310
Automotive Experience
Seating	2,370		—		(4		)	(2		)	2,364
Power Solutions	1,090		—		—			(8		)	1,082
Total	$	6,850	$	—	$	(7	)	$	(19	)	$	6,824



			Business Acquisitions		Business Divestitures			Currency Translation and Other
	September 30,										June 30,
	2015										2016

Building Efficiency
Systems and Service North America	$	978	$	—	$	(3	)	$	—		$	975
Products North America	1,701		—		—			—			1,701
Asia	389		260		—			—			649
Rest of World	310		5		—			(3		)	312
Automotive Experience
Seating	2,364		—		—			10			2,374
Power Solutions	1,082		—		—			—			1,082
Total	$	6,824	$	265	$	(3	)	$	7		$	7,093

At June 30, 2015, accumulated goodwill impairment charges included $430 million and $47 million related to the Automotive Experience Interiors and Building Efficiency Rest of World - Latin America reporting units, respectively.

At October 1, 2015, the Company assessed goodwill for impairment in the Building Efficiency business due to the change in reportable segments as described in Note 18, "Segment Information," of the notes to consolidated financial statements. As a result, the Company performed impairment testing for goodwill under the new segments and determined that the estimated fair value of each reporting unit substantially exceeded its corresponding carrying amount including recorded goodwill, and as such, no impairment existed at October 1, 2015. No reporting unit was determined to be at risk of failing step one of the goodwill impairment test.

The Company’s other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of (in millions):



	June 30, 2016							September 30, 2015							June 30, 2015
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortized intangible assets
Patented technology	$	47	$	(28	)	$	19	$	80	$	(59	)	$	21	$	83	$	(60	)	$	23
Customer relationships	1,015		(251		)	764		975		(206		)	769		986		(195		)	791
Miscellaneous	398		(156		)	242		307		(123		)	184		304		(116		)	188
Total amortized intangible assets	1,460		(435		)	1,025		1,362		(388		)	974		1,373		(371		)	1,002
Unamortized intangible assets
Trademarks/trade names	543		—			543		542		—			542		543		—			543
Total intangible assets	$	2,003	$	(435	)	$	1,568	$	1,904	$	(388	)	$	1,516	$	1,916	$	(371	)	$	1,545

Amortization of other intangible assets for the three month periods ended June 30, 2016 and 2015 was $26 million and $24 million, respectively. Amortization of other intangible assets for the nine month periods ended June 30, 2016 and 2015 was $74 million and $70 million, respectively. Excluding the impact of any future acquisitions, the Company anticipates amortization for fiscal 2017, 2018, 2019, 2020 and 2021 will be approximately $104 million, $102 million, $86 million, $77 million and $67 million per year, respectively.

- 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