Goodwill and Intangibles
Goodwill
Effective January 1, 2013, we realigned our operating segments and determined that goodwill (which, prior to the realignment, had been assigned fully to our former R&M segment) should now be assigned to three of the realigned operating segments—Midstream, Refining and M&S. We further determined that, for the Midstream segment, Transportation constituted a reporting unit. For the Refining and M&S segments, we determined the goodwill reporting unit was at the operating segment level, due to the economic similarities of the components of those segments. Goodwill was reassigned to the realigned units using a relative fair value approach. See Note 5—Assets Held for Sale or Sold for information on goodwill allocated to assets held for sale or sold.
The carrying amount of goodwill was as follows:
|
| | | | | | | | | | | | |
| Millions of Dollars |
| Midstream |
| | Refining |
| | Marketing and Specialties |
| | Total |
|
| | | | | | | |
Balance at January 1, 2012 | $ | 518 |
| | 1,922 |
| | 892 |
| | 3,332 |
|
Goodwill allocated to assets sold | — |
| | (25 | ) | | — |
| | (25 | ) |
Tax and other adjustments | — |
| | 37 |
| | — |
| | 37 |
|
Balance at December 31, 2012 | 518 |
| | 1,934 |
| | 892 |
| | 3,344 |
|
Tax and other adjustments | — |
| | (15 | ) | | — |
| | (15 | ) |
Goodwill allocated to assets held-for-sale or sold | — |
| | — |
| | (233 | ) | | (233 | ) |
Balance at December 31, 2013 | $ | 518 |
| | 1,919 |
| | 659 |
| | 3,096 |
|
Intangible Assets
Information at December 31 on the carrying value of intangible assets follows:
|
| | | | | | |
| Millions of Dollars |
| Gross Carrying Amount |
| 2013 |
| | 2012 |
|
Indefinite-Lived Intangible Assets | | | |
Trade names and trademarks | $ | 494 |
| | 494 |
|
Refinery air and operating permits | 200 |
| | 207 |
|
| $ | 694 |
| | 701 |
|
At year-end 2013, our amortized intangible asset balance was $4 million, compared with $23 million at year-end 2012. Amortization expense was not material for 2013 and 2012, and is not expected to be material in future years.
