United states securities and exchange commission

Goodwill Impairments

The carrying amounts for all periods presented were net of accumulated impairments of $120 million in Transportation & Advanced Polymers and $309 million in Industrial Intermediates & Infrastructure. In addition, the carrying amount of goodwill at December 31, 2017, was net of accumulated impairments of $1,491 million in Performance Materials & Coatings as discussed below.

Goodwill Impairment Testing

The Company performs an impairment test of goodwill annually in the fourth quarter. In the fourth quarter of 2017, the Company early adopted ASU 2017-04. See Note 2 for additional information.

In 2017, the Company performed quantitative testing for 12 reporting units ( 3 in 2016 and 3 in 2015) and a qualitative assessment was performed for the remaining 5 reporting units that carry goodwill. The qualitative assessment indicated that it was not more likely than not that fair value was less than the carrying value for those reporting units included in the qualitative test.
Upon completion of quantitative testing in the fourth quarter of 2017, the Company determined the Coatings & Performance Monomers reporting unit was impaired. Throughout 2017, the Coatings & Performance Monomers reporting unit did not consistently meet expected financial performance targets, primarily due to increasing commoditization in coatings markets and
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competition, as well as customer consolidation in end markets which reduced growth opportunities. As a result, the Coatings & Performance Monomers reporting unit lowered future revenue and profitability expectations. The fair value of the Coatings & Performance Monomers reporting unit was determined using a discounted cash flow methodology that reflected reductions in projected revenue growth rates, primarily driven by modified sales volume and pricing assumptions, as well as revised expectations for future growth rates. These discounted cash flows did not support the carrying value of the Coatings & Performance Monomers reporting unit. As a result, the Company recorded a goodwill impairment charge for the Coatings & Performance Monomers reporting unit of $1,491 million in the fourth quarter of 2017, included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income and related to Performance Materials & Coatings. The Coatings & Performance Monomers reporting unit carried $1,071 million of goodwill at December 31, 2017.
No other goodwill impairments were identified as a result of the 2017 testing. Impairment tests conducted in 2016 and 2015 concluded that no goodwill impairments existed.


Other Intangible Assets

The following table provides information regarding the Company's other intangible assets:

Other Intangible Assets  1			Dec 31, 2017									Dec 31, 2016
In millions			Gross Carrying Amount			Accum Amort			Net			Gross Carrying Amount			Accum Amort			Net
Intangible assets with finite lives:
Developed technology			$	7,627		$	(1,834	)	$	5,793		$	3,254		$	(1,383	)	$	1,871
Software			1,420			(780		)	640			1,336			(696		)	640
Trademarks/tradenames			1,814			(596		)	1,218			696			(503		)	193
Customer-related			14,537			(2,151		)	12,386			4,806			(1,567		)	3,239
Microbial cell factories 2			397			(6		)	391			—			—			—
Favorable supply contracts  3			495			(17		)	478			—			—			—
Other 4			703			(166		)	537			168			(146		)	22
Total other intangible assets with finite lives			$	26,993		$	(5,550	)	$	21,443		$	10,260		$	(4,295	)	$	5,965
Intangible assets with indefinite lives:
In-process research and development ("IPR&D")			710			—			710			61			—			61
Germplasm  5			6,265			—			6,265			—			—			—
Trademarks/tradenames			4,856			—			4,856			—			—			—
Total other intangible assets			$	38,824		$	(5,550	)	$	33,274		$	10,321		$	(4,295	)	$	6,026
1.		Prior year data has been updated to conform with the current year presentation.
2.	Microbial cell factories, derived from natural microbes, are used to sustainably produce enzymes, peptides and chemicals using natural metabolic processes. The Company recognized the microbial cell factories as an intangible asset upon the Merger.
3.	Upon closing and pursuant to the terms of the FMC Agreement, DuPont entered into favorable supply contracts with FMC. DuPont recorded these contracts as intangible assets at the fair value of off-market contracts. Refer to Notes 3 and 4 for additional information.
4.	Primarily consists of sales and farmer networks, marketing and manufacturing alliances and noncompetition agreements.
5.	Germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The Company recognized germplasm as an intangible asset upon the Merger. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual or other factors which limit its useful life.

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In connection with the Merger, the Company recorded $27,221 million of intangible assets, as shown in the table below, representing the preliminary fair values at the Merger date. See Note 3 for additional information on the Merger.

Merger Intangible Assets	Gross Carrying Amount			Weighted-average Amort Period
In millions
Intangible assets with finite lives:
Developed technology	$	4,239		12 years
Trademarks/tradenames	1,080			15 years
Customer-related	9,264			17 years
Microbial cell factories	400			23 years
Other	453			17 years
Total other intangible assets with finite lives	$	15,436
Intangible assets with indefinite lives:
IPR&D	660
Germplasm	6,263
Trademarks/tradenames	4,862
Total other intangible assets	$	27,221

The following table provides information regarding amortization expense related to intangible assets:

Amortization Expense
In millions	2017			2016			2015
Other intangible assets, excluding software	$	1,013		$	544		$	419
Software, included in "Cost of sales"	$	87		$	73		$	72