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Note 15: Goodwill and Other Intangible Assets

December 31 (In millions) 2007 2006
GOODWILL
GE $ 55,689 $ 48,645
GECS 25,427 22,754
Total $ 81,116 $ 71,399
December 31 (In millions) 2007 2006

(a) Indefinite-lived intangible assets principally comprised trademarks, tradenames and U.S. Federal Communications Commission licenses.

OTHER INTANGIBLE ASSETS
GE
Intangible assets subject to amortization $ 9,278 $ 7,461
Indefinite-lived intangible assets(a) 2,355 2,278
11,633 9,739
GECS
Intangible assets subject to amortization 4,545 3,176
Total $ 16,178 $ 12,915

Changes in goodwill balances follow.

2007 2006
(In millions) Balance January 1(a) Acquisitions/ purchase accounting adjustments Dispositions, currency exchange and other Balance December 31 Balance January 1 Acquisitions/ purchase accounting adjustments Dispositions, currency exchange and other Balance December 31

(a) January 1, 2007, balance decreased by $89 million related to new accounting standards. See note 1.

Infrastructure $ 10,931 $ 6,069 $ 117 $ 17,117 $ 10,166 $ 590 $ 175 $ 10,931
Commercial Finance 12,745 1,568 308 14,621 12,027 566 152 12,745
GE Money 9,845 2 426 10,273 9,184 309 352 9,845
Healthcare 14,759 26 42 14,827 13,404 1,396 48 14,848
NBC Universal 18,000 733 18,733 17,534 838 (372) 18,000
Industrial 5,030 361 154 5,545 4,505 537 (12) 5,030
Total $ 71,310 $ 8,759 $ 1,047 $ 81,116 $ 66,820 $ 4,236 $ 343 $ 71,399

Goodwill balances increased $9,028 million in 2007 as a result of new acquisitions. The largest goodwill balance increases arose from acquisitions of Smiths Aerospace Group Ltd. ($3,877 million) and Vetco Gray ($1,379 million) by Infrastructure; Diskont und Kredit AG and Disko Leasing GmbH (DISKO) and ASL Auto Service-Leasing GmbH (ASL), the leasing businesses of KG Allgemeine Leasing GmbH & Co. ($694 million) by Commercial Finance; Oxygen Media ($604 million) by NBC Universal; and Sanyo Electric Credit Co., Ltd. ($548 million) by Commercial Finance. The goodwill balance declined by $269 million related to purchase accounting adjustments to prior-year acquisitions during 2007.

Goodwill balances increased $4,430 million in 2006 as a result of new acquisitions. The largest goodwill balance increases arose from acquisitions of IDX Systems Corporation ($1,133 million) and Biacore International AB ($308 million) by Healthcare; iVillage Inc. ($521 million) by NBC Universal; ZENON Environmental Inc. ($506 million) by Infrastructure; and Banque Artesia Nederland N.V., a subsidiary of Dexia Group ($340 million) and the custom fleet business of National Australia Bank Ltd. ($306 million) by Commercial Finance. Goodwill declined in 2006 as a result of the sale of television stations ($304 million) by NBC Universal. The goodwill balance also declined by $194 million related to purchase accounting adjustments to prior-year acquisitions during 2006.

Upon closing an acquisition, we estimate the fair values of assets and liabilities acquired and consolidate the acquisition as quickly as possible. Given the time it takes to obtain pertinent information to finalize the acquired company’s balance sheet, then to adjust the acquired company’s accounting policies, procedures, books and records to our standards, it is often several quarters before we are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for our initial estimates to be subsequently revised.

Intangible assets Subject to Amortization

December 31 (In millions) Gross carrying amount Accumulated amortization Net
GE
2007
Customer-related $ 4,526 $ (698) $ 3,828
Patents, licenses and trademarks 4,561 (1,369) 3,192
Capitalized software 4,573 (2,589) 1,984
All other 436 (162) 274
Total $ 14,096 $ (4,818) $ 9,278
2006
Customer-related $ 2,853 $ (484) $ 2,369
Patents, licenses and trademarks 4,242 (1,071) 3,171
Capitalized software 4,184 (2,467) 1,717
All other 313 (109) 204
Total $ 11,592 $ (4,131) $ 7,461
GECS
2007
Customer-related $ 2,185 $ (867) $ 1,318
Patents, licenses and trademarks 602 (315) 287
Capitalized software 1,857 (1,105) 752
Lease valuations 1,909 (376) 1,533
Present value of future profits 818 (364) 454
All other 350 (149) 201
Total $ 7,721 $ (3,176) $ 4,545
2006
Customer-related $ 1,410 $ (654) $ 756
Patents, licenses and trademarks 413 (265) 148
Capitalized software 1,645 (965) 680
Lease valuations 851 (132) 719
Present value of future profits 829 (297) 532
All other 500 (159) 341
Total $ 5,648 $ (2,472) $ 3,176

During 2007, we recorded additions to intangible assets subject to amortization of $4,286 million. The components of finite-lived intangible assets acquired during 2007 and their respective weighted-average useful lives are: $2,277 million — Customer-related (17.5 years); $299 million — Patents, licenses and trademarks (20.2 years); $590 million — Capitalized software (4.2 years); $992 million — Lease valuations (7.6 years); and $128 million — All other (9.9 years).

Consolidated amortization related to intangible assets subject to amortization was $2,080 million and $1,744 million for 2007 and 2006, respectively. We estimate that annual pre-tax amortization for intangible assets subject to amortization over the next five calendar years to be as follows: 2008 — $1,969 million; 2009 — $1,804 million; 2010 — $1,635 million; 2011 — $1,470 million; 2012 — $1,320 million.