Note 11
Goodwill and other intangible assets

The changes in “Goodwill” below have been recast to reflect the reorganization of the Company’s operating segments as outlined in Note 23:

($ in millions)

Electrification
Products

Robotics and Motion

Industrial Automation

Power Grids

Corporate
and Other

Total

Cost at January 1, 2016

2,824

3,557

1,606

1,558

144

9,689

Accumulated impairment charges

(18)

(18)

Balance at January 1, 2016

2,824

3,557

1,606

1,558

126

9,671

Goodwill acquired during the year

12

12

Goodwill allocated to assets held for sale

(105)

(105)

Exchange rate differences and other

(19)

(33)

(14)

(11)

(77)

Balance at December 31, 2016

2,805

3,536

1,592

1,547

21

9,501

Goodwill acquired during the year

4

1,263

70

1,337

Goodwill allocated to disposals

(1)

(1)

(2)

Exchange rate differences and other

164

67

85

46

1

363

Balance at December 31, 2017

2,969

3,607

2,939

1,663

21

11,199

In 2017, goodwill acquired primarily relates to B&R, acquired in July, 2017, which has been allocated to the Industrial Automation operating segment.

In 2016, goodwill allocated to the high-voltage cable system business, within Corporate and Other (formerly reported in the Power Grids operating segment), was transferred to “Assets held for sale”. The sale was completed in March 2017, see Note 3 for details.

Intangible assets other than goodwill consisted of the following:

 

2017

2016

December 31, ($ in millions)

Gross carrying
amount

Accumulated
amortization

Net carrying
amount

Gross carrying
amount

Accumulated
amortization

Net carrying
amount

Capitalized software for internal use

787

(646)

141

712

(596)

116

Capitalized software for sale

453

(412)

41

409

(365)

44

Intangibles other than software:

 

 

 

 

 

 

Customer-related

2,861

(1,084)

1,777

2,500

(904)

1,596

Technology-related

1,239

(760)

479

755

(660)

95

Marketing-related

371

(202)

169

291

(159)

132

Other

38

(23)

15

34

(21)

13

Total

5,749

(3,127)

2,622

4,701

(2,705)

1,996

Additions to intangible assets other than goodwill consisted of the following:

($ in millions)

2017

2016

Capitalized software for internal use

71

39

Capitalized software for sale

22

18

Intangibles other than software:

 

 

Customer-related

293

Technology-related

437

1

Marketing-related

65

Total

888

58

Included in the additions of $888 million in 2017, were the following intangible assets other than goodwill related to business combinations:

 

2017

($ in millions)

Amount acquired

Weighted-average useful life

(1)

Includes the fair value of order backlog acquired in business combinations.

Intangibles other than software:

 

 

Customer-related(1)

293

19 years

Technology-related

434

7 years

Marketing-related

65

10 years

Total

792

 

There were no significant intangible assets acquired in business combinations during 2016.

Amortization expense of intangible assets other than goodwill consisted of the following:

December 31, ($ in millions)

2017

2016

2015

Capitalized software for internal use

54

57

60

Capitalized software for sale

26

25

21

Intangibles other than software

271

287

315

Total

351

369

396

In 2017, 2016 and 2015, impairment charges on intangible assets other than goodwill were not significant.

At December 31, 2017, future amortization expense of intangible assets other than goodwill is estimated to be:

($ in millions)

 

2018

371

2019

326

2020

296

2021

262

2022

149

Thereafter

1,218

Total

2,622