Note 3 Goodwill and Acquired Intangible Assets
The following table identifies the activity relating to goodwill by operating segment:
| In millions | Balance December 31, 2012 |
Additions | Currency Translation Adjustments |
Balance December 31, 2013 |
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Goodwill |
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Americas |
$ | 616 | $ | 12 | ($ | 2 | ) | $ | 626 | |||||||
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International |
316 | 4 | 0 | 320 | ||||||||||||
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Total goodwill |
$ | 932 | $ | 16 | ($ | 2 | ) | $ | 946 | |||||||
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The change in goodwill for the twelve months ended December 31, 2013 was primarily due to immaterial acquisitions that were completed during the period. In the fourth quarter of 2013, the Company performed its annual impairment test of goodwill and determined that no impairment to the carrying value of goodwill was necessary, as the fair value of each reporting unit exceeded their respective carrying amounts, including goodwill. Teradata reviewed four reporting units in its 2013 goodwill impairment assessment, as both geographic operating segments consisted of separate reporting units for data warehouse and application software activities.
Acquired intangible assets were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows:
| December 31, 2013 | December 31, 2012 | |||||||||||||||||||
| In millions | Amortization Life (in Years) |
Gross Carrying Amount |
Accumulated Amortization and Currency Translation Adjustments |
Gross Carrying Amount |
Accumulated Amortization and Currency Translation Adjustments |
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Acquired intangible assets |
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Intellectual property/developed technology |
1 to 7 | $ | 153 | $ | (70 | ) | $ | 153 | $ | (48 | ) | |||||||||
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Customer relationships |
3 to 10 | 77 | (23 | ) | 77 | (14 | ) | |||||||||||||
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Trademarks/trade names |
1 to 5 | 15 | (7 | ) | 15 | (2 | ) | |||||||||||||
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In-process research and development |
5 | 5 | (1 | ) | 5 | 0 | ||||||||||||||
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Non-compete agreements |
1 to 3 | 1 | (1 | ) | 1 | (1 | ) | |||||||||||||
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Total |
1 to 10 | $ | 251 | $ | (102 | ) | $ | 251 | $ | (65 | ) | |||||||||
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The gross carrying amount of acquired intangible assets was reduced by certain intangible assets previously acquired that became fully amortized and were removed from the balance sheet. This decrease was offset by the addition of newly acquired intangible assets associated with immaterial acquisitions in the current year.
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is:
| Actual | For the year ended (estimated) | |||||||||||||||||||||||
| In millions | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||||
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Amortization expense |
$ | 44 | $ | 45 | $ | 37 | $ | 27 | $ | 18 | $ | 7 | ||||||||||||