MCGRAW HILL FINANCIAL INC | 2013 | FY | 3

Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired.

The change in the carrying amount of goodwill by segment is shown below:
(in millions)
S&P Ratings
 
S&P Capital IQ
 
S&P DJ Indices
 
C&C
 
Total
Balance as of December 31, 2011
$
197

 
$
238

 
$
223

 
$
446

 
$
1,104

Acquisitions
29

 
164

 
111

 
21

 
325

Transfers/reorganizations
(95
)
 
53

 
45

 
—

 
3

Other (primarily Fx)
(1
)
 
2

 
1

 
4

 
6

Balance as of December 31, 2012
130

 
457

 
380

 
471

 
1,438

Dispositions
—

 
(3
)
 
(4
)
 
(29
)
 
(36
)
Other (primarily Fx)
(5
)
 
15

 
—

 
—

 
10

Balance as of December 31, 2013
$
125

 
$
469

 
$
376

 
$
442

 
$
1,412



Goodwill additions and dispositions in the table above relate to transactions discussed in Note 2 – Acquisitions and Divestitures.

Other Intangible Assets

Other intangible assets include both indefinite-lived assets not subject to amortization and definite-lived assets subject to amortization. We have indefinite-lived assets with a carrying value of $634 million as of both December 31, 2013 and 2012 that consist of:
•
$380 million and $90 million, for Dow Jones Indices intellectual property and the Dow Jones tradename, respectively, that we recorded as part of the transaction to form S&P Dow Jones Indices LLC in 2012 further described in Note 2 – Acquisitions and Divestitures, and
•
$164 million within our C&C segment for the J.D. Power and Associates tradename.

The following table summarizes our definite-lived intangible assets:
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Cost
Databases and software
 
Content
 
Customer relationships
 
Tradenames
 
Other intangibles
 
Total
Balance as of December 31, 2011
$
109

 
$
139

 
$
115

 
$
45

 
$
62

 
$
470

   Acquisitions
17

 
—

 
110

 
1

 
108

 
236

     Other (primarily Fx)
—

 
—

 
—

 
(1
)
 
1

 
—

Balance as of December 31, 2012
126

 
139

 
225

 
45

 
171

 
706

   Acquisitions
—

 
—

 
—

 
—

 
44

 
44

     Dispositions
(9
)
 
—

 
—

 
—

 
(13
)
 
(22
)
     Impairment 1
—

 
—

 
—

 
—

 
(26
)
 
(26
)
     Other (primarily Fx)
(2
)
 
—

 
—

 
—

 
(6
)
 
(8
)
Balance as of December 31, 2013
$
115

 
$
139

 
$
225

 
$
45

 
$
170

 
$
694

 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortization
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2011
$
70

 
$
17

 
$
43

 
$
27

 
$
50

 
$
207

Current year amortization
10

 
14

 
11

 
3

 
10

 
48

     Other (primarily Fx)
—

 
—

 
1

 
—

 
3

 
4

Balance as of December 31, 2012
80

 
31

 
55

 
30

 
63

 
259

Current year amortization
9

 
14

 
11

 
2

 
15

 
51

     Dispositions
(6
)
 
—

 
—

 
—

 
(9
)
 
(15
)
     Other (Primarily Fx)
—

 
—

 
1

 
—

 
(1
)
 
—

Balance as of December 31, 2013
$
83

 
$
45

 
$
67

 
$
32

 
$
68

 
$
295

 
 
 
 
 
 
 
 
 
 
 
 
Net definite-lived intangibles:
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
$
46

 
$
108

 
$
170

 
$
15

 
$
108

 
$
447

December 31, 2013
$
32

 
$
94

 
$
158

 
$
13

 
$
102

 
$
399


1 
We incurred a $26 million non-cash impairment charge associated with an intangible asset acquired through the formation of our S&P Dow Jones Indices LLC joint venture.

Definite-lived intangible assets are being amortized on a straight-line basis over periods of up to 40 years. The weighted-average life of the intangible assets as of December 31, 2013 is approximately 9 years. Amortization expense for the years ended December 31, 2013, 2012 and 2011, and the projected amortization expense for intangible assets over the next 5 years for the years ended December 31, assuming no further acquisitions or dispositions, is as follows:
(in millions)
Amortization
expense
 
Expected
amortization
expense
2011
$
33

 
 
2012
48

 
 
2013
51

 
 
2014
 
 
$
47

2015
 
 
45

2016
 
 
45

2017
 
 
42

2018

 
36

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