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Note 10 - Goodwill and Intangible Assets, Net
Goodwill
The following table presents the changes in the carrying amount of goodwill, by reportable segment:
Services
Document
Technology Total
Balance at December 31, 2011 $6,619 $2,184 $8,803
Foreign currency translation 41 34 75
Acquisitions:
WDS 69 —69
R.K. Dixon —30 30
Other 51 34 85
Balance at December 31, 2012 $6,780 $2,282 $9,062
Foreign currency translation 6 16 22
Acquisitions:
Zeno —44 44
Impika —43 43
Other 29 534
Balance at December 31, 2013 $6,815 $2,390 $9,205
Foreign currency translation (98)(56)(154)
Acquisitions:
Invoco 39 —39
ISG 166 — 166
Consilience 23 —23
Other 21921
Divestitures (1) (495)—(495
)
Balance at December 31, 2014 $6,452 $2,353 $8,805
___________
(1) Primarily represents goodwill related to our ITO business ($487) which is held for sale and being reported as a discontinued operation at
December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale.
Intangible Assets, Net
Net intangible assets were $2,031 at December 31, 2014 of which $1,677 relate to our Services segment and $354
relate to our Document Technology segment. Intangible assets were comprised of the following:
December 31, 2014 December 31, 2013
Weighted
Average
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Customer relationships 12 years $ 3,636 $1,670 $1,966 $ 3,580 $ 1,359 $2,221
Distribution network 25 years 123 74 49 123 69 54
Trademarks 20 years 274 87 187 269 72 197
Technology, patents and
non-compete 9 years 40 14 26 41 10 31
Subtotal 4,073 1,845 2,228 4,013 1,510 2,503
Discontinued Operations(1) (335)(138)(197)———
Total Intangible Assets $3,738 $1,707 $2,031 $ 4,013 $ 1,510 $2,503
_______________
(1) Represents net intangible assets related to our ITO business which is held for sale and being reported as a discontinued operation at
December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale.
Amortization expense related to intangible assets was $315, $305, and $301 for the years ended December 31,
2014, 2013 and 2012, respectively1. Excluding the impact of additional acquisitions, amortization expense is
expected to approximate $305 in 2015 and 2016, and $300 in years 2017, 2018 and 20191.
(1) Excludes amounts related to our ITO business, which is held for sale and reported as a discontinued operation at December 31, 2014.
Refer to Note 4 - Divestitures for additional information regarding this pending sale.
Xerox 2014 Annual Report 92