Hubbell Policies

GOODWILL AND INTANGIBLE ASSETS POLICY

English

Owner : Vice President, Controller

Last Review: 2015.08.14

FIN – 26

Department: Finance

POLICY This policy and related procedure establishes the process around the recording of goodwill and intangible assets. Any subsequent adjustment to the value of goodwill and intangible assets in the general ledger (other than foreign currency translation) must be approved by the Corporate Controllers office.

SCOPE The policy applies to all business units that have recorded goodwill and intangible assets in the general ledger.

PURPOSE The purpose of this policy and the related procedure is to clarify when goodwill and intangible assets may be recognized in the general ledger, the approvals required relating to key aspects of goodwill and intangible assets, and the approvals required to adjust the value of goodwill and intangible assets in the general ledger. PROCEDURE Goodwill and intangible assets (excluding intangible assets associated with capitalized internal-use software) may not be recognized in the general ledger without the prior written approval of the Corporate Controller’s office. The recognition and accounting for intangible assets related to capitalized internal-use software is governed by the Capitalized Software Policy and Procedure for Capitalized Software Costs. Goodwill The value of goodwill initially recognized in the general ledger is approved by the Corporate Controller’s office in conjunction with the approval of the opening balance sheet model. After the initial recognition, any subsequent adjustment to the value of goodwill in the general ledger must be approved by the Corporate Controller’s office. Intangible assets Each of the following key aspects of intangible assets requires advance approval by the Corporate Controller’s office. 1. The use of specialists to estimate the fair value of intangible assets 2. The initial value to be recognized in the general ledger will be approved by the Corporate Controller’s office in conjunction with the approval of the opening balance sheet model. After the initial recognition in the opening balance sheet, any subsequent adjustment to the value of intangible assets (other than routine amortization) must be approved by the Corporate Controller’s office. 3. Whether a recognized intangible asset will be classified as definite-lived (and therefore subject to

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