10. GOODWILL AND OTHER INTANGIBLE ASSETS
The goodwill balances at October 31, 2013, 2012 and 2011 and the movements in 2013 and 2012 for each of our reportable segments are shown in the table below:
|
| | | | | | | | | | | | | | | |
| Life Sciences and Diagnostics | | Chemical Analysis | | Electronic Measurement | | Total |
| (in millions) |
Goodwill as of October 31, 2011 | $ | 363 |
| | $ | 760 |
| | $ | 444 |
| | $ | 1,567 |
|
Foreign currency translation impact | 25 |
| | (10 | ) | | (9 | ) | | 6 |
|
Goodwill arising from acquisitions | 1,419 |
| | 1 |
| | 32 |
| | 1,452 |
|
Goodwill as of October 31, 2012 | $ | 1,807 |
| | $ | 751 |
| | $ | 467 |
| | $ | 3,025 |
|
Foreign currency translation impact | 63 |
| | (10 | ) | | (47 | ) | | 6 |
|
Goodwill arising from acquisitions and other adjustments | 13 |
| | 4 |
| | (1 | ) | | 16 |
|
Goodwill as of October 31, 2013 | $ | 1,883 |
| | $ | 745 |
| | $ | 419 |
| | $ | 3,047 |
|
We formed a new operating segment in the fourth fiscal quarter of 2013. The new life sciences and diagnostics segment was formed by the combination of the life sciences business plus the diagnostics and genomics business. The historical segment information for the life sciences and diagnostics segment has been recast to conform to this new reporting structure. The goodwill balance as of October 31, 2011 has been revised due to miscategorization at acquisition. $4 million of goodwill from the life sciences and diagnostics segment and $5 million of goodwill from the chemical analysis segment has been reallocated to the electronic measurement segment. As of September 30, 2013, we assessed goodwill impairment for our reporting units and no impairment of goodwill was indicated.
The component parts of other intangible assets at October 31, 2013 and 2012 are shown in the table below:
|
| | | | | | | | | | | |
| Other Intangible Assets |
| Gross Carrying Amount | | Accumulated Amortization and Impairments | | Net Book Value |
| (in millions) |
As of October 31, 2012: | | | | | |
Purchased technology | $ | 849 |
| | $ | 333 |
| | $ | 516 |
|
Backlog | 14 |
| | 14 |
| | — |
|
Trademark/Tradename | 168 |
| | 27 |
| | 141 |
|
Customer relationships | 391 |
| | 155 |
| | 236 |
|
Total amortizable intangible assets | $ | 1,422 |
| | $ | 529 |
| | $ | 893 |
|
In-Process R&D | 193 |
| | — |
| | 193 |
|
Total | $ | 1,615 |
| | $ | 529 |
| | $ | 1,086 |
|
As of October 31, 2013: | | | | | |
Purchased technology | $ | 1,019 |
| | $ | 460 |
| | $ | 559 |
|
Backlog | 14 |
| | 14 |
| | — |
|
Trademark/Tradename | 176 |
| | 40 |
| | 136 |
|
Customer relationships | 401 |
| | 215 |
| | 186 |
|
Total amortizable intangible assets | $ | 1,610 |
| | $ | 729 |
| | $ | 881 |
|
In-Process R&D | 35 |
| | — |
| | 35 |
|
Total | $ | 1,645 |
| | $ | 729 |
| | $ | 916 |
|
In 2013, we recorded additions to goodwill of $16 million related to the acquisition of four businesses. During the year, we also recorded $5 million of additions and adjustments to other intangibles mostly related to the same four businesses. We recorded $25 million of foreign exchange translation impact to other intangibles in 2013. The $158 million decrease in in-process R&D was largely due to the completion of projects in our life sciences and diagnostics segment.
In 2012, we recorded additions to goodwill of $1,452 million related to ten businesses including the Dako acquisition discussed in Note 3, "Acquisitions". During the year, we also recorded additions to other intangibles of $786 million including $183 million of Dako in-process research and development, related to the same ten businesses. We recorded $8 million of foreign exchange translation impact to other intangibles in 2012.
Amortization of intangible assets was $199 million in 2013, $136 million in 2012, and $111 million in 2011. In addition, we recorded $1 million of impairments of other intangibles related to the cancellation of an in-process research and development project during 2013. Future amortization expense related to finite-lived existing purchased intangible assets is estimated to be $194 million in 2014, $181 million for 2015, $154 million for 2016, $106 million for 2017, $70 million for 2018, and $176 million thereafter.
