Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v2.4.0.8
GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS
The following table summarizes the changes in the carrying amount of goodwill for 2013 and 2012:
In millions
Components
 
Distribution
 
Power Generation
 
Engine
 
Total
Balance at December 31, 2011
$
311

 
$
10

 
$
12

 
$
6

 
$
339

Acquisitions
91

 
9

 

 

 
100

Translation and other
6

 

 

 

 
6

Balance at December 31, 2012
408

 
19

 
12

 
6

 
445

Acquisitions

 
13

 

 

 
13

Translation and other
3

 
(1
)
 
1

 

 
3

Balance at December 31, 2013
$
411

 
$
31

 
$
13

 
$
6

 
$
461


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
2013
 
2012
Software
$
494

 
$
495

Less: Accumulated amortization
(218
)
 
(218
)
Net software
276

 
277

Trademarks, patents and other
135

 
140

Less: Accumulated amortization
(54
)
 
(48
)
Net trademarks, patents and other
81

 
92

Total
$
357

 
$
369


Amortization expense for software and other intangibles totaled $86 million, $64 million, and $57 million for the years ended December 31, 2013, 2012 and 2011, respectively. Internal and external software costs (excluding those related to research, re-engineering and training), trademarks and patents are amortized generally over a 3 to 12 year period. The projected amortization expense of our intangible assets, assuming no further acquisitions or dispositions, was as follows:
 
For the years ended
In millions
2014
 
2015
 
2016
 
2017
 
2018
Projected amortization expense
$
74

 
$
78

 
$
72

 
$
51

 
$
27