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92
NOTE 10 – GOODWILL AND OTHER INTANGIBLE ASSETS
The following tables show changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014, by
operating segment:
2015 Goodwill
Agricultural
Sciences
Consumer
Solutions
Infrastructure
Solutions
Performance
Materials &
Chemicals
Performance
Plastics Total
In millions
Gross goodwill at Jan 1, 2015 $ 1,558 $ 4,598 $ 4,451 $ 1,029 $ 1,425 $ 13,061
Accumulated impairments at
Jan 1, 2015 —(209) — (220) — (429)
Net goodwill at Jan 1, 2015 $ 1,558 $ 4,389 $ 4,451 $ 809 $ 1,425 $ 12,632
Divestiture of ANGUS
Chemical Company — — — (292) — (292)
Divestiture of the Sodium
Borohydride business — — — (45) — (45)
Sale of Agricultural Sciences
product lines (16) — — — — (16)
Divestiture of AgroFresh (101) — — — — (101)
Split-off of the chlorine value
chain — — — (71) — (71)
Goodwill related to the
Coodetec acquisition 31 — — — — 31
Goodwill related to the
Univation step acquisition — — — — 141 141
Foreign currency impact — (15) (69) (10) (31) (125)
Net goodwill at Dec 31, 2015 $ 1,472 $ 4,374 $ 4,382 $ 391 $ 1,535 $ 12,154
Accumulated impairments at
Dec 31, 2015 — 209 — 220 — 429
Gross goodwill at Dec 31, 2015 $ 1,472 $ 4,583 $ 4,382 $ 611 $ 1,535 $ 12,583
2014 Goodwill
Agricultural
Sciences
Consumer
Solutions
Infrastructure
Solutions
Performance
Materials &
Chemicals
Performance
Plastics Total
In millions
Gross goodwill at Jan 1, 2014 $ 1,563 $ 4,618 $ 4,540 $ 1,041 $ 1,465 $ 13,227
Accumulated impairments at
Jan 1, 2014 —(209) — (220) — (429)
Net goodwill at Jan 1, 2014 $ 1,563 $ 4,409 $ 4,540 $ 821 $ 1,465 $ 12,798
Purchase price adjustment of a
seed company (5) — — — — (5)
Foreign currency impact — (20) (89) (12) (40) (161)
Net goodwill at Dec 31, 2014 $ 1,558 $ 4,389 $ 4,451 $ 809 $ 1,425 $ 12,632
Accumulated impairments at
Dec 31, 2014 — 209 — 220 — 429
Gross goodwill at Dec 31, 2014 $ 1,558 $ 4,598 $ 4,451 $ 1,029 $ 1,425 $ 13,061
Goodwill Impairments
The Company performs an impairment test for goodwill annually during the fourth quarter. Qualitative factors may be assessed
by the Company to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying
value. The qualitative factors assessed at the Company level include, but are not limited to, GDP growth rates, long-term
hydrocarbon and energy prices, equity and credit market activity, discount rates, foreign exchange rates and overall financial
performance. Qualitative factors assessed at the reporting unit level include, but are not limited to, changes in industry and
market structure, competitive environments, planned capacity and new product launches, cost factors such as raw material
prices, and financial performance of the reporting unit.