Goodwill and Purchased Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

4. GOODWILL AND PURCHASED INTANGIBLE ASSETS

Goodwill

The carrying amounts of goodwill by segment as of June 30, 2015 and December 31, 2014 are included in the table below. Foreign currency fluctuations are included within other adjustments.



	December 31, 2014														June 30, 2015
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment		Other			Goodwill		Accumulated Impairment Losses			Total
Financial Services	$	1,493	$	—		$	1,493	$	—	$	—	$	1		$	1,494	$	—		$	1,494
Retail Solutions	581		(7		)	574		—		—		—			581		(7		)	574
Hospitality	669		—			669		2		—		(5		)	666		—			666
Emerging Industries	24		—			24		—		—		—			24		—			24
Total goodwill	$	2,767	$	(7	)	$	2,760	$	2	$	—	$	(4	)	$	2,765	$	(7	)	$	2,758

Purchased Intangible Assets

NCR’s purchased intangible assets, reported in intangibles, net in the Condensed 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 set forth in the table below.



	Amortization Period (in Years)	June 30, 2015					December 31, 2014
In millions	Amortization Period (in Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Identifiable intangible assets
Reseller & customer relationships	1 - 20	$	660	$	(77	)	$	660	$	(63	)
Intellectual property	2 - 8	393		(213		)	393		(181		)
Customer contracts	8	89		(34		)	89		(22		)
Tradenames	2 - 10	74		(29		)	74		(24		)
Non-compete arrangements	2 - 5	8		(8		)	8		(8		)
Total identifiable intangible assets		$	1,224	$	(361	)	$	1,224	$	(298	)

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



In millions	Three months ended June 30, 2015		Six months ended June 30, 2015		Remainder of 2015 (estimated)
Amortization expense	$	31	$	63	$	64



	For the years ended December 31 (estimated)
In millions	2016		2017		2018		2019		2020
Amortization expense	$	125	$	116	$	85	$	75	$	57

- 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