Goodwill and Other Intangibles Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

5. GOODWILL AND OTHER INTANGIBLE ASSETS

	June 30,		December 31,
(In millions)	2012		2011

Goodwill	$	27,072	$	27,230

Other intangible assets - net
Intangible assets subject to amortization	$	1,443	$	1,546

Changes in goodwill balances follow.

					Dispositions,
	Balance at				currency		Balance at
	January 1,				exchange		June 30,
(In millions)	2012		Acquisitions		and other		2012

CLL	$	13,745	$	0	$	(109)	$	13,636
Consumer		10,775		0		(18)		10,757
Real Estate		1,001		0		(31)		970
Energy Financial Services		1,562		0		0		1,562
GECAS		147		0		0		147
Total	$	27,230	$	0	$	(158)	$	27,072

Goodwill balances decreased $158 million during the six months ended June 30, 2012, primarily as a result of currency exchange effects of a stronger U.S. dollar ($145 million). Our reporting units and related goodwill balances are CLL ($13,636 million), Consumer ($10,757 million), Real Estate ($970 million), Energy Financial Services ($1,562 million) and GECAS ($147 million) at June 30, 2012.

Intangible Assets Subject to Amortization

	June 30, 2012						December 31, 2011
	Gross						Gross
	carrying		Accumulated				carrying		Accumulated
(In millions)	amount		amortization		Net		amount		amortization		Net


Customer-related	$	1,201	$	(744)	$	457	$	1,186	$	(697)	$	489
Patents, licenses and
trademarks		237		(203)		34		250		(208)		42
Capitalized software		2,084		(1,647)		437		2,048		(1,597)		451
Lease valuations		1,443		(963)		480		1,470		(944)		526
Present value of
future profits (a)		517		(517)		0		491		(491)		0
All other		285		(250)		35		327		(289)		38
Total	$	5,767	$	(4,324)	$	1,443	$	5,772	$	(4,226)	$	1,546

Balances at June 30, 2012 and December 31, 2011 reflect adjustments of $366 million and $391 million, respectively, to the present value of future profits in our run-off insurance operation to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses actually been realized in accordance with ASC 320-10-S99-2.

Amortization related to intangible assets subject to amortization was $124 million and $143 million in the three months ended June 30, 2012 and 2011, respectively, and $234 million and $289 million in the six months ended June 30, 2012 and 2011, respectively, and is recorded in the caption “Operating and administrative” on the Statement of Earnings.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details