Goodwill and Other-Long Lived Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Long-Lived Assets [Text Block]

GOODWILL AND OTHER LONG-LIVED ASSETS

Goodwill

The carrying amounts of goodwill by segment as of December 31, 2011 and 2010 are included in the table below. Foreign currency fluctuations are included within other adjustments.



	January 1, 2011									Impairment						December 31, 2011
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment			Other			Goodwill		Accumulated Impairment Losses			Total
Financial Services	$	67	$	—		$	67	$	86	$	—		$	(1	)	$	152	$	—		$	152
Retail Solutions	21		(3		)	18		99		—			—			120		(3		)	117
Hospitality and Specialty Retail	—		—			—		624		—			(5		)	619		—			619
Entertainment	5		—			5		—		(5		)	—			5		(5		)	—
Emerging Industries	25		—			25		—		—			—			25		—			25
Total	$	118	$	(3	)	$	115	$	809	$	(5	)	$	(6	)	$	921	$	(8	)	$	913

	January 1, 2010									Impairment						December 31, 2010
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment			Other			Goodwill		Accumulated Impairment Losses			Total
Financial Services	$	66	$	—		$	66	$	—	$	—		$	1		$	67	$	—		$	67
Retail Solutions	21		(3		)	18		—		—			—			21		(3		)	18
Hospitality and Specialty Retail	—		—			—		—		—			—			—		—			—
Entertainment	5		—			5		—		—			—			5		—			5
Emerging Industries	11		—			11		14		—			—			25		—			25
Total	$	103	$	(3	)	$	100	$	14	$	—		$	1		$	118	$	(3	)	$	115

For 2011, based on our qualitative assessments, we determined that it is more likely than not that our reporting units' fair value was greater than their respective carrying amounts, with the exception of our Entertainment and Travel & Gaming reporting units. Our qualitative assessment included, but was not limited to, consideration of macroeconomic conditions, industry and market conditions, cost factors, cash flows, changes in key management and our share price.

Based on our annual assessment performed during the fourth quarter of 2011, the fair value of our Travel & Gaming reporting unit exceeded its carrying value by more than 210% under the first step of the quantitative test. Goodwill associated with the Travel & Gaming reporting unit was $1 million and is included within the Emerging Industries operating segment.

Based on our annual assessment performed during the fourth quarter of 2011, the carrying value of our Entertainment reporting unit exceeded its fair value under the first step of the test which indicates a potential impairment. Under the second step, the implied fair value of goodwill was greater than the carrying value of goodwill resulting in no impairment charge.

As of December 31, 2011, we determined that it was probable that we would dispose of our Entertainment business, which triggered an impairment assessment of the related assets which include long-lived assets, goodwill and definite-lived intangible assets. We evaluated the carrying value of these assets compared to the fair value based on a market approach using an independent third-party market price and determined the goodwill associated with the Entertainment reporting unit was fully impaired. The impairment of $5 million was recorded within impairment charges in the Consolidated Statements of Operations for the twelve months ended December 31, 2011.

Long-Lived Assets

NCR’s identifiable intangible assets, reported in other assets in the Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as follows. The increase in the gross carrying amount is primarily due to the acquisitions detailed in Note 3, “Business Combinations and Investments.”



	Weighted Average Amortization Period (in Years)	December 31, 2011					December 31, 2010
In millions	Weighted Average Amortization Period (in Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Identifiable intangible assets
Reseller & customer relationships	1 - 15	$	167	$	(8	)	$	7	$	(2	)
Intellectual property	2 - 7	164		(59		)	59		(49		)
Tradenames	2 - 9	49		(3		)	1		(1		)
Non-compete arrangements	2 - 5	7		(5		)	5		(5		)
Total identifiable intangible assets		$	387	$	(75	)	$	72	$	(57	)

As noted above, we determined that it was probable that we would dispose of our Entertainment business, which triggered an impairment assessment of the related assets which include long-lived assets, goodwill and definite-lived intangible assets.

Based on this evaluation, we determined that the long-lived asset group, consisting of property, plant and equipment and definite-lived intangible assets, mainly customer relationships, related to the Entertainment business was impaired. These assets had a carrying amount of approximately $148 million, and an estimated fair value of $65 million. Of the total impairment charge of $83 million, $81 million was allocated to property, plant and equipment and $2 million was allocated to definite-lived intangible assets. Fair value was based on a market approach using an independent third-party market price. The impairment was recorded within impairment charges in the Consolidated Statements of Operations for the twelve months ended December 31, 2011.

The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:



	December 31, 2011		For the years ended December 31 (estimated)
In millions	December 31, 2011		2012		2013		2014		2015		2016
Amortization expense	$	19	$	42	$	41	$	39	$	36	$	32

- 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