Cummins Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018:



In millions	Components			New Power			Distribution		Power Systems		Engine		Segment Total			Unallocated				Total
Balance at December 31, 2017	$	940		$	—		$	79	$	10	$	6	$	1,035		$	47		⁽²⁾	$	1,082
Acquisitions	—			49		⁽¹⁾	—		—		—		49			—				49
Translation and other	(5		)	—			—		—		—		(5		)	—				(5		)
Allocation to segment	—			47		⁽²⁾	—		—		—		47			(47		)	⁽²⁾	—
Balance at December 31, 2018	935			96			79		10		6		1,126			—				1,126
Acquisitions	—			161		⁽¹⁾	—		—		—		161			—				161
Translation and other	(1		)	—			—		—		—		(1		)	—				(1		)
Balance at December 31, 2019	$	934		$	257		$	79	$	10	$	6	$	1,286		$	—			$	1,286

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⁽¹⁾	See Note 21, "ACQUISITIONS," for additional information on acquisition goodwill.

⁽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 Power segment. See Note 21, "ACQUISITIONS," for additional information.

Summary of other intangible assets with finite useful lives that are subject to amortization

The following table summarizes our other intangible assets with finite useful lives that are subject to amortization:



	December 31,
In millions	2019			2018
Software	$	708		$	662
Less: Accumulated amortization	(425		)	(372		)
Software, net	283			290
Trademarks, patents, customer relationships and other	956			803
Less: Accumulated amortization	(236		)	(184		)
Trademarks, patents, customer relationships and other, net	720			619
Total other intangible assets, net	$	1,003		$	909

Projected amortization expense of intangible assets

The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, is as follows:



In millions	2020		2021		2022		2023		2024
Projected amortization expense	$	136	$	118	$	101	$	84	$	66