Goodwill and Purchased Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

6. GOODWILL AND OTHER LONG-LIVED ASSETS

Goodwill

The carrying amounts of goodwill by segment are included in the tables below. Foreign currency fluctuations are included within other adjustments.



	January 1, 2015															December 31, 2015
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment			Other			Goodwill		Accumulated Impairment Losses			Total
Financial Services	$	1,493	$	—		$	1,493	$	—	$	(4	)	$	(3	)	$	1,490	$	(4	)	$	1,486
Retail Solutions	581		(7		)	574		—		(1		)	—			581		(8		)	573
Hospitality	669		—			669		2		(11		)	(9		)	662		(11		)	651
Emerging Industries	24		—			24		—		—			(1		)	23		—			23
Total goodwill	$	2,767	$	(7	)	$	2,760	$	2	$	(16	)	$	(13	)	$	2,756	$	(23	)	$	2,733



	January 1, 2014															December 31, 2014
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment			Other			Goodwill		Accumulated Impairment Losses			Total
Financial Services	$	255	$	—		$	255	$	1,243	$	—		$	(5	)	$	1,493	$	—		$	1,493
Retail Solutions	581		(3		)	578		—		(4		)	—			581		(7		)	574
Hospitality	676		—			676		—		—			(7		)	669		—			669
Emerging Industries	25		—			25		—		—			(1		)	24		—			24
Total goodwill	$	1,537	$	(3	)	$	1,534	$	1,243	$	(4	)	$	(13	)	$	2,767	$	(7	)	$	2,760

As of December 31, 2015, we determined that it was probable that we would dispose of our IPS business, which triggered an impairment assessment of the related assets which include long-lived assets and goodwill. 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 Financial Services, Retail Solutions, and Hospitality reporting units was impaired. The impairment of $16 million was recorded within other (expense), net in the Consolidated Statements of Operations for the year ended December 31, 2015. Refer to Note 5, "Business Combinations and Divestitures" for further discussion.

Purchased Intangible Assets

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



	Amortization Period (in Years)	December 31, 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	$	659	$	(92	)	$	660	$	(63	)
Intellectual property	2 - 8	392		(244		)	393		(181		)
Customer contracts	8	89		(46		)	89		(22		)
Tradenames	2 - 10	73		(33		)	74		(24		)
Total identifiable intangible assets		$	1,213	$	(415	)	$	1,216	$	(290	)

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



	For the year ended December 31, 2015		For the years ended December 31 (estimated)
In millions	For the year ended December 31, 2015		2016		2017		2018		2019		2020
Amortization expense	$	125	$	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.

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