Goodwill and Other Intangible Assets

9 Months Ended

Jun. 30, 2011

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

		Effective October 1, 2010, the building efficiency business unit reorganized its management reporting structure to reflect its current business activities. Historical information has been revised to reflect the new building efficiency reportable segment structure. Refer to Note 17, “Segment Information,” to the financial statements for further information.

		The changes in the carrying amount of goodwill in each of the Company’s reporting segments for the three month period ended September 30, 2010 and the nine month period ended June 30, 2011 were as follows (in millions):


					Currency
	June 30,		Business		Translation and			September 30,
	2010		Acquisitions		Other			2010
Building efficiency
North America systems	$	526	$	—	$	(4	)	$	522
North America service		672		4		—			676
Global workplace solutions		169		—		8			177
Asia		368		—		11			379
Other		1,035		—		50			1,085
Automotive experience
North America		1,377		—		1			1,378
Europe		1,022		4		114			1,140
Asia		218		—		15			233
Power solutions		830		51		30			911

Total	$	6,217	$	59	$	225		$	6,501


					Currency
	September 30,		Business		Translation and			June 30,
	2010		Acquisitions		Other			2011
Building efficiency
North America systems	$	522	$	—	$	(3	)	$	519
North America service		676		—		—			676
Global workplace solutions		177		—		7			184
Asia		379		—		12			391
Other		1,085		—		36			1,121
Automotive experience
North America		1,378		4		—			1,382
Europe		1,140		429		70			1,639
Asia		233		—		10			243
Power solutions		911		3		24			938

Total	$	6,501	$	436	$	156		$	7,093

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


	June 30, 2011							September 30, 2010							June 30, 2010
	Gross Carrying		Accumulated					Gross Carrying		Accumulated					Gross Carrying		Accumulated
	Amount		Amortization			Net		Amount		Amortization			Net		Amount		Amortization			Net
Amortized intangible assets
Patented technology	$	287	$	(215	)	$	72	$	277	$	(191	)	$	86	$	266	$	(180	)	$	86
Customer relationships		440		(85	)		355		373		(70	)		303		344		(64	)		280
Miscellaneous		113		(35	)		78		68		(31	)		37		63		(28	)		35

Total amortized intangible assets		840		(335	)		505		718		(292	)		426		673		(272	)		401
Unamortized intangible assets
Trademarks		317		—			317		315		—			315		294		—			294

Total intangible assets	$	1,157	$	(335	)	$	822	$	1,033	$	(292	)	$	741	$	967	$	(272	)	$	695

Amortization of other intangible assets for the three month periods ended June 30, 2011 and 2010 was $13 million and $10 million, respectively. Amortization of other intangible assets for the nine month periods ended June 30, 2011 and 2010 was $36 million and $32 million, respectively. Excluding the impact of future acquisitions, the Company anticipates amortization for fiscal 2012, 2013, 2014, 2015 and 2016 will be approximately $46 million, $40 million, $38 million, $36 million and $33 million per year, respectively.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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