Note 11
Goodwill and other intangible assets

The changes in “Goodwill” below have been recast to reflect the reorganization in 2018 of the Company’s operating segments as outlined in Note 23:

($ in millions)

Electrification Products

Industrial Automation

Robotics and Motion

Corporate and Other

Total

Cost at January 1, 2017

2,805

1,592

3,536

38

7,971

Accumulated impairment charges

(18)

(18)

Balance at January 1, 2017

2,805

1,592

3,536

20

7,953

Goodwill acquired during the year

1,263

4

1,267

Goodwill allocated to disposals

(1)

(1)

(2)

Exchange rate differences and other

164

85

67

2

318

Balance at December 31, 2017

2,969

2,939

3,607

21

9,536

Goodwill acquired during the year

1,442

30

1,472

Goodwill allocated to disposals

(31)

(31)

Exchange rate differences and other

(104)

(75)

(34)

(213)

Balance at December 31, 2018

4,276

2,864

3,603

21

10,764

In 2018, goodwill acquired primarily relates to GEIS, acquired in June, 2018, which has been allocated to the Electrification Products operating segment.

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

Intangible assets other than goodwill consisted of the following:

 

2018

2017

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

779

(586)

193

704

(572)

132

Capitalized software for sale

30

(30)

31

(31)

Intangibles other than software:

 

 

 

 

 

 

Customer-related

2,609

(909)

1,700

2,452

(782)

1,670

Technology-related

1,131

(701)

430

1,082

(636)

446

Marketing-related

483

(240)

243

366

(199)

167

Other

67

(26)

41

33

(23)

10

Total

5,099

(2,492)

2,607

4,668

(2,243)

2,425

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

($ in millions)

2018

2017

Capitalized software for internal use

139

69

Intangibles other than software:

 

 

Customer-related

214

264

Technology-related

87

412

Marketing-related

122

61

Other

34

Total

596

806

Included in the additions of $596 million and $806 million in 2018 and 2017, respectively, were the following intangible assets other than goodwill related to business combinations:

 

2018

2018

($ in millions)

Amount acquired

Weighted-average useful life

Amount acquired

Weighted-average useful life

Capitalized software for internal use

65

2 years

 

 

Intangibles other than software:

 

 

 

 

Customer-related

214

14 years

264

20 years

Technology-related

87

7 years

412

7 years

Marketing-related

122

13 years

61

10 years

Other

34

13 years

 

Total

522

 

737

 

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

December 31, ($ in millions)

2018

2017

2016

Capitalized software for internal use

59

50

50

Intangibles other than software

279

237

254

Total

338

287

304

In 2018, 2017 and 2016, impairment charges on intangible assets other than goodwill were not significant.

At December 31, 2018, future amortization expense of intangible assets other than goodwill is estimated to be:

($ in millions)

 

2019

342

2020

321

2021

285

2022

253

2023

234

Thereafter

1,172

Total

2,607