Xerox 2011 Annual Report Download - page 80

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78
Note 8 – Goodwill and Intangible Assets, Net
Goodwill
The following table presents the changes in the carrying amount of goodwill, by reportable segment:
Year Ended December 31,
Technology Services Other Total
Balance at December 31, 2008 $ 2,246 $ 929 $ 7 $ 3,182
Foreign currency translation 61 60 1 122
Acquisitions:
ComDoc 106 — — 106
Other 12 — — 12
Balance at December 31, 2009 $ 2,425 $ 989 $ 8 $ 3,422
Foreign currency translation (25) (22) — (47)
Acquisitions:
ACS — 5,127 — 5,127
EHRO — 77 — 77
TMS — 35 — 35
IBS 14 — — 14
Other 11 10 — 21
Balance at December 31, 2010 $ 2,425 $ 6,216 $ 8 $ 8,649
Foreign currency translation (6) (28) — (34)
Acquisitions:
Unamic/HCN — 43 — 43
Breakaway — 33 — 33
ESM — 28 — 28
Concept Group 26 — — 26
MBM 20 — — 20
Other 17 21 — 38
Balance at December 31, 2011 $ 2,482 $ 6,313 $ 8 $ 8,803
Intangible Assets, Net
Intangible assets primarily relate to the Services operating segment. Intangible assets were comprised of the following:
December 31, 2011 December 31, 2010
Weighted
Average Gross Gross
Amortization Carrying Accumulated Net Carrying Accumulated Net
Years Amount Amortization Amount Amount Amortization Amount
Customer base 12 $ 3,522 $ 751 $ 2,771 $ 3,487 $ 464 $ 3,023
Distribution network 25 123 59 64 123 54 69
Trademarks(1) 20 238 47 191 325 59 266
Technology, patents and
non-compete(1) 4 29 13 16 47 34 13
Total Intangible Assets
$ 3,912 $ 870 $ 3,042 $ 3,982 $ 611 $ 3,371
(1) Includes $10 and $5 of indefinite-lived assets within trademarks and technology, respectively, related to the 2010 acquisition of ACS.
Amortization expense related to intangible assets was $401, $316 and
$64 for the years ended December 31, 2011, 2010 and 2009, respectively.
Amortization expense for 2011 includes $52 for the accelerated write-off
of the ACS trade name as a result of the fourth quarter 2011 decision
to discontinue its use and transition our services business to the “Xerox
Services” trade name.
Excluding the impact of additional acquisitions, amortization expense
is expected to approximate $329 in 2012, $328 in 2013, $326 in 2014,
$324 in 2015 and $324 in 2016.
Notes to the Consolidated
Financial Statements
(in millions, except per-share data and where otherwise noted)