Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets [Abstract]

7. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the three months ended March 31, 2012 were as follows:

	North	South			Surface
(Millions of dollars)	America	America	Europe	Asia	Technologies	Total

Balance, December 31, 2011	$ 1,375	$ 215	$ 618	$ 24	$ 140	$ 2,372
Acquisitions	-	-	1	-	-	1
Purchase adjustments & other	(5)	-	-	-	-	(5)
Foreign currency translation	14	7	21	1	2	45
Balance, March 31, 2012	$ 1,384	$ 222	$ 640	$ 25	$ 142	$ 2,413

Impairment tests have been performed annually during the second quarter of each year since the initial adoption of the goodwill accounting standard in 2002, and no impairments were indicated. We determined that the fair value of each of our reporting units is substantially in excess of its carrying value and, there were no indicators of impairment through March 31, 2012.

Changes in the carrying amounts of other intangibles for the three months ended March 31, 2012 were as follows:

	Customer &
	License/Use	Non-compete	Patents &
(Millions of dollars)	Agreements	Agreements	Other	Total
Cost:
Balance, December 31, 2011	$ 208	$ 37	$ 27	$ 272
Additions	3	-	-	3
Foreign currency translation	4	-	1	5
Other	3	(4)	(3)	(4)
Balance, March 31, 2012	$ 218	$ 33	$ 25	$ 276
Less: Accumulated amortization
Balance, December 31, 2011	$ (75)	$ (20)	$ (10)	$ (105)
Amortization expense	(4)	(2)	-	(6)
Foreign currency translation	(3)	-	-	(3)
Other	(1)	4	-	3
Balance, March 31, 2012	$ (83)	$ (18)	$ (10)	$ (111)
Net balance at March 31, 2012	$ 135	$ 15	$ 15	$ 165

There are no expected residual values related to these intangible assets. The remaining weighted-average amortization period for intangible asset is approximately 12 years.

Total estimated annual amortization expense is as follows:
	(Millions of dollars)
	Remaining 2012	$ 18
	2013	22
	2014	20
	2015	20
	2016	18
	Thereafter	67
		$ 165

- 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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