Emerson 2009 Annual Report Download - page 36

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Emerson 200934

Acquisitions are accounted for under the purchase method, with substantially all goodwill assigned to the reporting
unit that acquires the business. Under the annual impairment test, if a reporting unit’s carrying amount exceeds its
estimated fair value, a goodwill impairment is recognized to the extent that the reporting unit’s carrying amount of
goodwill exceeds the implied fair value of the goodwill. Fair values of reporting units are estimated using discounted
cash ows and market multiples. The change in goodwill by business segment follows. See Notes 3 and 4 for further
discussion of changes in goodwill related to acquisitions, divestitures and impairment.
 p R o C e s s in d u s t RiAl n e t w o R k C l i m A t e A p p l i A n C e
 m A n A G e m e n t A u t o m A t i o n p o w e R t e C h n o l o G i e s A n d t o o l s t o t A l
Balance, September 30, 2007 $1,985 1,070 2,259 420 678 6,412
Acquisitions 87 24 162 273
Divestitures (83) (83)
Impairment (31) (31)
Foreign currency translation and other (29) 13 11 (8) 4 (9)
Balance, September 30, 2008 2,043 1,107 2,432 412 568 6,562
Acquisitions 242 204 60 35 541
Divestitures (2) (2)
Impairment
Foreign currency translation and other (6) (7) (13) 1 2 (23)
 $2,279 1,304 2,417 473 605 7,078
The gross carrying amount and accumulated amortization of identiable intangible assets by major class follow:
 G R o s s C A R R y i n G A m o u n t A C C u m u l A t e d A m o R t i z A t i o n n e t C A R R y i n G A m o u n t
2008  2009 2008  2009 2008  2009
Intellectual property and
customer relationships $ 985
1,392 358 462 627 930
Capitalized software 805 883 613 669 192 214
$1,790 2,275 971 1,131 819 1,144
Total intangible asset amortization expense for 2009, 2008 and 2007 was $184, $150 and $131, respectively. Based on
intangible asset balances as of September 30, 2009, amortization expense is expected to approximate $196 in 2010,
$182 in 2011, $150 in 2012, $108 in 2013 and $85 in 2014.