John Deere 2010 Annual Report Download - page 42

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The components of other intangible assets are as follows
in millions of dollars:
Useful Lives*
(Years) 2010 2009
Amortized intangible assets:
Customer lists and relationships ........... 13 $ 98 $ 93
Technology, patents, trademarks
and other ........................................ 17 85 105
Total at cost .................................... 183 198
Less accumulated amortization** ......... 70 62
Total ............................................... 113 136
Unamortized intangible assets:
Licenses ............................................. 4
Other intangible assets-net ................ $ 117 $ 136
* Weighted-averages
** Accumulated amortization at 2010 and 2009 for customer lists and relationships
was $44 million and $35 million and technology, patents, trademarks and other was
$26 million and $27 million, respectively.
Other intangible assets are stated at cost less accumulated
amortization. The amortization of other intangible assets in
2010, 2009 and 2008 was $18 million, $18 million and
$20 million, respectively. The estimated amortization expense
for the next fi ve years is as follows in millions of dollars:
2011 - $15, 2012 - $14, 2013 - $13, 2014 - $12 and 2015 - $11.
18. SHORT-TERM BORROWINGS
Short-term borrowings at October 31 consisted of the following
in millions of dollars:
2010 2009
Equipment Operations
Commercial paper ........................................................ $ 37 $ 101
Notes payable to banks ................................................. 8 77
Long-term borrowings due within one year .................... 40 312
Total ........................................................................ 85 490
Financial Services
Commercial paper ........................................................ 1,991 185
Notes payable to banks ................................................. 36 3
Notes payable related to securitizations (see below) ....... 2,209 3,132
Long-term borrowings due within one year .................... 3,214 3,349
Total ........................................................................ 7,450 6,669
Short-term borrowings ............................................. $ 7,5 35 $ 7,159
The notes payable related to securitizations for Financial
Services are secured by restricted fi nancing receivables (retail
notes) on the balance sheet (see Note 13). Although these notes
payable are classifi ed as short-term since payment is required if
the retail notes are liquidated early, the payment schedule for
these borrowings of $2,209 million at October 31, 2010 based
on the expected liquidation of the retail notes in millions of
dollars is as follows: 2011 - $1,324, 2012 - $659, 2013 - $207
and 2014 - $19.
The weighted-average interest rates on total short-term
borrowings, excluding current maturities of long-term
borrowings, at October 31, 2010 and 2009 were 1.0 percent and
1.7 percent, respectively. The Financial Services’ short-term
borrowings represent obligations of the credit subsidiaries.
Financial Services property and equipment additions
included above were none, $1 million and $359 million in 2010,
2009 and 2008 and depreciation was $64 million, $62 million
and $34 million, respectively. Financial Services had additions to
cost of property and equipment in 2010 and 2009 of $23 million
and $71 million, which were offset by cost reductions of
$23 million and $70 million due to becoming eligible for
government grants for certain wind energy investments related
to costs recognized in prior and current periods.
Capitalized software is stated at cost less accumulated
amortization, and the estimated useful life is three years.
The amounts of total capitalized software costs, including
purchased and internally developed software, classifi ed as
“Other Assets” at October 31, 2010 and 2009 were $526
million and $486 million, less accumulated amortization of
$394 million and $342 million, respectively. Amortization of
these software costs was $68 million in 2010, $54 million in
2009 and $35 million in 2008. The cost of leased software assets
under capital leases amounting to $35 million and $33 million
at October 31, 2010 and 2009, respectively, is included in
other assets.
The cost of compliance with foreseeable environmental
requirements has been accrued and did not have a material
effect on the company’s consolidated fi nancial statements.
17. GOODWILL AND OTHER INTANGIBLE ASSETS-NET
The changes in amounts of goodwill by operating segments
were as follows in millions of dollars:
Agriculture Construction
and and
Turf Forestry Total
Balance at October 31, 2008 .............. $ 664 $ 561 $ 1,225
Acquisi tions ........................................ 32 13 45
Impairment loss* ................................ (289) (289)
Translation adjustments ...................... 2 54 56
Balance at October 31, 2009 .............. 698 628 1,326
Less accumulated
impairment losses ...................... (289) (289)
N e t b alan c e .................................... 409 628 1,037
Acquisi tions ........................................ 1 1
Divestitures ........................................ (5) (5)
Impairment loss* ................................ (27) (27)
Translation adjustments ...................... 6 (13) (7)
Balance at October 31, 2010 .............. 705 610 1,315
Less accumulated
impairment losses ...................... (316) (316)
Net balance .................................... $ 389 $ 610 $ 999
* See Note 5.