Dow Chemical 2015 Annual Report Download - page 103

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93
2015 Goodwill Impairment Testing
In 2015, the Company assessed qualitative factors for 9 of the 12 reporting units carrying goodwill. The qualitative assessment
indicated that it was more likely than not that the fair value exceeded carrying value for those reporting units included in the
qualitative test. The Company performed the first step of the quantitative testing for the remaining three reporting units. The
Company utilized a discounted cash flow methodology to calculate the fair value of the reporting units. Based on the fair value
analysis, management concluded that fair value exceeded carrying value for all reporting units. As a result, no additional
quantitative testing was required for the reporting units.
2014 Goodwill Impairment Testing
In 2014, the Company assessed qualitative factors for 9 of the 14 reporting units carrying goodwill. The qualitative assessment
indicated that it was more likely than not that the fair value exceeded carrying value for those reporting units included in the
qualitative test. The Company performed the first step of the quantitative testing for the remaining five reporting units. The
Company utilized a discounted cash flow methodology to calculate the fair value of the reporting units. Based on the fair value
analysis, management concluded that fair value exceeded carrying value for all reporting units. As a result, no additional
quantitative testing was required for the reporting units.
2013 Goodwill Impairment Testing
In 2013, the Company assessed qualitative factors for 14 of the 19 units carrying goodwill. The qualitative assessment indicated
that it was more likely than not that the fair value exceeded carrying value for those reporting units included in the qualitative
test. The Company performed the first step of the quantitative testing for the remaining five reporting units. The Company
utilized a discounted cash flow methodology to calculate the fair value of the reporting units. Based on the fair value analysis,
management concluded that fair value exceeded carrying value for all reporting units. As a result, no additional quantitative
testing was required for the reporting units.
Other Intangible Assets
The following table provides information regarding the Company’s other intangible assets:
Other Intangible Assets at December 31 2015 2014
In millions
Gross
Carrying
Amount
Accumulated
Amortization Net
Gross
Carrying
Amount
Accumulated
Amortization Net
Intangible assets with finite lives:
Licenses and intellectual property $ 1,943 $ (1,087) $ 856 $ 1,777 $ (1,060) $ 717
Patents 119 (108) 11 122 (108) 14
Software 1,253 (628) 625 1,287 (648) 639
Trademarks 666 (441) 225 685 (409) 276
Customer-related 3,164 (1,366) 1,798 3,443 (1,366) 2,077
Other 165 (140) 25 158 (146) 12
Total other intangible assets, finite lives $ 7,310 $ (3,770) $ 3,540 $ 7,472 $ (3,737) $ 3,735
IPR&D (1), indefinite lives 77 — 77 33 — 33
Total other intangible assets $ 7,387 $ (3,770) $ 3,617 $ 7,505 $ (3,737) $ 3,768
(1) In-process research and development ("IPR&D") purchased in a business combination.
On January 30, 2015, DAS acquired Coodetec's seed business resulting in an increase to intangible assets of $81 million, which
included $14 million of trademarks, $1 million of customer-related intangibles, $20 million of germplasm (included in "Other"
in the table above) and $46 million of IPR&D. See Note 4 for additional information on this acquisition.