GE 2015 Annual Report Download - page 190

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FINANCIAL STATEMENTS ACQUISITIONS & INTANGIBLE ASSETS
162 GE 2015 FORM 10-K
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS - NET
December 31
(
In millions
)
2015 2014
Intangible assets subject to amortization $ 16,634 $ 13,052
Indefinite-lived intangible assets(a) 109 130
Total $ 16,744 $ 13,182
(a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development.
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
2015 2014
Gross Gross
carrying Accumulated carrying Accumulated
December 31 (In millions) amoun
t
amortization Ne
t
amoun
t
amortization Ne
t
Customer-related $ 8,650 $ (2,059) $ 6,591 $ 7,139 $ (1,772) $ 5,367
Patents and technology 8,543 (3,096) 5,447 6,685 (2,894) 3,791
Capitalized software 7,375 (4,136) 3,239 6,509 (3,547) 2,962
Trademarks 1,337 (282) 1,055 1,129 (251) 878
Lease valuations 167 (22) 145 - - -
Present value of future profits(a) 651 (651) - 614 (614) -
A
ll other 267 (108) 159 107 (53) 54
Total $ 26,990 $ (10,354) $ 16,634 $ 22,183 $ (9,131) $ 13,052
(a) Balances at December 31, 2015 and 2014 reflect adjustments of $266 million and $293 million, respectively, to the present value of future
profits in our run-off insurance operation to reflect the effects that would have been recognized had the related unrealized investment
securities holding gains and losses actually been realized.
During 2015, we recorded additions to intangible assets subject to amortization of $5,764 million, primarily driven by Alstom, capitalized
software across all business lines and Milestone Aviation. The components of finite-lived intangible assets acquired during 2015 and
their respective weighted average amortizable period follow.
COMPONENTS OF FINITE-LIVED INTANGIBLE ASSETS ACQUIRED DURING 2015
Weighted-average
Gross amortizable period
(In millions) carrying value (in years)
Customer-related $ 1,737 8.5
Patents and technology 2,213 10.2
Capitalized software 1,196 7.0
Trademarks 223 6.3
Lease valuations 167 4.7
A
ll other 227 9.5
GE amortization expense related to intangible assets subject to amortization was $1,505 million, $1,386 million and $1,286 million in
2015, 2014 and 2013, respectively. GE Capital amortization expense related to intangible assets subject to amortization was $148
million, $84 million and $93 million in 2015, 2014 and 2013, respectively. Estimated GE Consolidated annual pre-tax amortization for
intangible assets over the next five calendar years follows.
ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION
(
In millions
)
2016 2017 2018 2019 2020
Estimated annual pre-tax amortization $ 1,952 $ 1,853 $ 1,851 $ 1,725 $ 1,591
162 GE 2015 FORM 10-K