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NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS
The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
Components |
|
Electrified Power |
|
Distribution |
|
Power Systems |
|
Engine |
|
Segment Total |
|
Unallocated |
|
Total |
Balance at December 31, 2016 |
|
$ |
386 |
|
|
$ |
— |
|
|
$ |
79 |
|
|
$ |
9 |
|
|
$ |
6 |
|
|
$ |
480 |
|
|
$ |
— |
|
|
$ |
480 |
|
Acquisitions |
|
544 |
|
(1) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
544 |
|
|
47 |
|
(2) |
591 |
|
Translation and other |
|
10 |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
Balance at December 31, 2017 |
|
940 |
|
|
— |
|
|
79 |
|
|
10 |
|
|
6 |
|
|
1,035 |
|
|
47 |
|
|
1,082 |
|
Acquisitions |
|
— |
|
|
49 |
|
(1) |
— |
|
|
— |
|
|
— |
|
|
49 |
|
|
— |
|
|
49 |
|
Translation and other |
|
(5 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
— |
|
|
(5 |
) |
Allocation to segment |
|
— |
|
|
47 |
|
(2) |
— |
|
|
— |
|
|
— |
|
|
47 |
|
|
(47 |
) |
|
— |
|
Balance at December 31, 2018 |
|
$ |
935 |
|
|
$ |
96 |
|
|
$ |
79 |
|
|
$ |
10 |
|
|
$ |
6 |
|
|
$ |
1,126 |
|
|
$ |
— |
|
|
$ |
1,126 |
|
____________________________________________________
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|
(1) |
See Note 19, "ACQUISITIONS," for additional information on acquisition goodwill.
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|
|
(2) |
Goodwill associated with the Brammo Inc. acquisition was presented as an unallocated item as it had not yet been assigned to a reportable segment at December 31, 2017. Effective January 1, 2018, Brammo Inc. was assigned to our new Electrified Power segment. See Note 19, "ACQUISITIONS," for additional information.
|
Intangible assets that have finite useful lives are amortized over their estimated useful lives. The following table summarizes our other intangible assets with finite useful lives that are subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
In millions |
|
2018 |
|
2017 |
Software |
|
$ |
662 |
|
|
$ |
718 |
|
Less: Accumulated amortization |
|
(372 |
) |
|
(386 |
) |
Software, net |
|
290 |
|
|
332 |
|
Trademarks, patents, customer relationships and other |
|
803 |
|
|
786 |
|
Less: Accumulated amortization |
|
(184 |
) |
|
(145 |
) |
Trademarks, patents, customer relationships and other, net |
|
619 |
|
|
641 |
|
Total other intangible assets, net |
|
$ |
909 |
|
|
$ |
973 |
|
Amortization expense for software and other intangibles totaled $153 million, $112 million and $92 million for the years ended December 31, 2018, 2017 and 2016, respectively. The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows:
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
2019 |
|
2020 |
|
2021 |
|
2022 |
|
2023 |
Projected amortization expense |
|
$ |
125 |
|
|
$ |
114 |
|
|
$ |
93 |
|
|
$ |
73 |
|
|
$ |
56 |
|
|