E. Goodwill and Other Intangible Assets
The following table details the changes in the carrying amount of goodwill:
| Alumina |
Primary Metals |
Global Products |
Engineered
Products |
Corporate* | Total | |||||||||||||||||||
|
Balance at December 31, 2011: |
||||||||||||||||||||||||
|
Goodwill |
$ | 11 | $ | 991 | $ | 208 | $ | 2,694 | $ | 1,281 | $ | 5,185 | ||||||||||||
|
Accumulated impairment losses |
- | - | - | (28 | ) | - | (28 | ) | ||||||||||||||||
| 11 | 991 | 208 | 2,666 | 1,281 | 5,157 | |||||||||||||||||||
|
Acquisition of businesses |
- | - | - | (1 | ) | - | (1 | ) | ||||||||||||||||
|
Translation |
(1 | ) | 6 | 6 | 12 | (9 | ) | 14 | ||||||||||||||||
|
Balance at December 31, 2012: |
||||||||||||||||||||||||
|
Goodwill |
10 | 997 | 214 | 2,705 | 1,272 | 5,198 | ||||||||||||||||||
|
Accumulated impairment losses |
- | - | - | (28 | ) | - | (28 | ) | ||||||||||||||||
| 10 | 997 | 214 | 2,677 | 1,272 | 5,170 | |||||||||||||||||||
|
Impairment |
- | (989 | ) | - | - | (742 | ) | (1,731 | ) | |||||||||||||||
|
Translation |
(1 | ) | (8 | ) | 4 | (7 | ) | (12 | ) | (24 | ) | |||||||||||||
|
Balance at December 31, 2013: |
||||||||||||||||||||||||
|
Goodwill |
9 | 989 | 218 | 2,698 | 1,260 | 5,174 | ||||||||||||||||||
|
Accumulated impairment losses |
- | (989 | ) | - | (28 | ) | (742 | ) | (1,759 | ) | ||||||||||||||
| $ | 9 | $ | - | $ | 218 | $ | 2,670 | $ | 518 | $ | 3,415 | |||||||||||||
| * | As of December 31, 2013, $493 of the amount reflected in Corporate is allocated to three of Alcoa’s four reportable segments ($158 to Alumina, $61 to Global Rolled Products, and $274 to Engineered Products and Solutions) included in the table above for purposes of impairment testing (see Note A). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the three reportable segments. |
In 2013, Alcoa recognized an impairment of goodwill in the amount of $1,731 ($1,719 after noncontrolling interest) related to the annual impairment review of the Primary Metals segment (see Goodwill and Other Intangible Assets policy in Note A).
Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows:
| December 31, 2013 | Gross carrying amount |
Accumulated amortization |
||||||
|
Computer software |
$ | 988 | $ | (743 | ) | |||
|
Patents and licenses |
133 | (93 | ) | |||||
|
Other intangibles |
100 | (32 | ) | |||||
|
Total amortizable intangible assets |
1,221 | (868 | ) | |||||
|
Indefinite-lived trade names and trademarks |
46 | - | ||||||
|
Total other intangible assets |
$ | 1,267 | $ | (868 | ) | |||
| December 31, 2012 | Gross carrying amount |
Accumulated amortization |
||||||
|
Computer software |
$ | 907 | $ | (664 | ) | |||
|
Patents and licenses |
133 | (88 | ) | |||||
|
Other intangibles |
101 | (28 | ) | |||||
|
Total amortizable intangible assets |
1,141 | (780 | ) | |||||
|
Indefinite-lived trade names and trademarks |
46 | - | ||||||
|
Total other intangible assets |
$ | 1,187 | $ | (780 | ) | |||
Computer software consists primarily of software costs associated with an enterprise business solution (EBS) within Alcoa to drive common systems among all businesses.
Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2013, 2012, and 2011 was $73, $82, and $86, respectively, and is expected to be in the range of approximately $60 to $70 annually from 2014 to 2018.