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Goodwill and Other Intangible Assets—Net
 6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets—Net
6. Goodwill and Other Intangible Assets

At June 30, 2019 and December 31, 2018, goodwill consists of the following:
 
Six Months Ended June 30, 2019
 
Clean Air
 
Powertrain
 
Ride Performance
 
Motorparts
 
Total
Gross carrying amount at December 31, 2018
$
22

 
$
388

 
$
210

 
$
611

 
$
1,231

Measurement period adjustments
—

 
21

 
—

 
(67
)
 
(46
)
Acquisitions
—

 
—

 
28

 
—

 
28

Gross carrying amount at March 31, 2019
22

 
409

 
238

 
544

 
1,213

Measurement period adjustments
—

 
3

 
2

 
3

 
8

Foreign exchange
—

 
—

 
—

 
—

 
—

Gross carrying amount at June 30, 2019
22

 
412

 
240

 
547

 
1,221

 
 
 
 
 
 
 
 
 
 
Accumulated impairment loss at December 31, 2018
—

 
—

 
(143
)
 
(219
)
 
(362
)
Impairment
—

 
—

 
(60
)
 
—

 
(60
)
Accumulated impairment loss at March 31, 2019
—

 
—

 
(203
)
 
(219
)
 
(422
)
Foreign exchange
—

 
—

 
—

 
—

 
—

Accumulated impairment loss at June 30, 2019
—

 
—

 
(203
)
 
(219
)
 
(422
)
 
 
 
 
 
 
 
 
 
 
Net carrying value at end of period
$
22

 
$
412

 
$
37

 
$
328

 
$
799



The Öhlins Acquisition resulted in $30 million of goodwill which was included in the Ride Performance segment. During the six months ended June 30, 2019, the Company made the following adjustments to goodwill in the measurement period to the preliminary purchase price allocation for the Acquisitions:
•
an increase of $2 million for the Öhlins Acquisition; and
•
a net decrease of $40 million for the Federal-Mogul Acquisition.

The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

During the first quarter of 2019, the Company reorganized the reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. The Company reassigned assets and liabilities (excluding goodwill) to the reporting units affected. Goodwill was then reassigned to the reporting units using a relative fair value approach based on the fair value of the elements transferred and the fair value of the elements remaining within the original reporting units. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Ride Performance segment, one of which was a full impairment of the goodwill. As a result, this non-cash charge was recorded in the six months ended June 30, 2019. Goodwill allocated to other reporting units was supported by the valuation performed at that time.

During the three months ended June 30, 2019, the Company performed a review of potential triggering events, and concluded no events indicated it was more likely than not that the fair values of its reporting units had declined to below their carrying values at June 30, 2019. The Company considered the results of the post-reorganized reporting unit changes that occurred in the first quarter of 2019, which indicated nine reporting units with goodwill. Three of these nine reporting units have fair values that are within 15% of their carrying values and are reporting units that were acquired as part of the Acquisitions within the last year. The goodwill balance as of June 30, 2019 attributable to these three reporting units was $442 million. Management compared its future projected cash flows for these three reporting units as of June 30, 2019 compared to the future projected cash flows utilized in the valuation performed during the first quarter of 2019 and concluded there is no indication the carrying value of its reporting units would be less than their fair values.

If the Company’s market capitalization remains at current levels for a sustained period of time or declines further, and if such a decline becomes indicative the fair value of its reporting units have declined to below their carrying values, the Company will need to determine the fair value of its reporting units which may result in a material non-cash goodwill impairment charge in a future period.

At June 30, 2019 and December 31, 2018, the Company's intangible assets consist of the following:
 
 
 
June 30, 2019
 
December 31, 2018
 
Useful Lives
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
 
Gross Carrying Value
 
Accumulated Amortization
 
Net Carrying Value
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships and platforms
10 years
 
$
1,014

 
$
(75
)
 
$
939

 
$
964

 
$
(24
)
 
$
940

Customer contract
10 years
 
8

 
(6
)
 
2

 
8

 
(5
)
 
3

Patents
10 to 17 years
 
1

 
(1
)
 
—

 
1

 
(1
)
 
—

Technology rights
10 to 30 years
 
136

 
(31
)
 
105

 
98

 
(27
)
 
71

Packaged kits know-how
10 years
 
54

 
(4
)
 
50

 
36

 
(1
)
 
35

Catalogs
10 years
 
40

 
(3
)
 
37

 
—

 
—

 
—

Licensing agreements
3 to 5 years
 
63

 
(11
)
 
52

 
66

 
(3
)
 
63

Land use rights
28 to 46 years
 
46

 
(2
)
 
44

 
44

 
(2
)
 
42

 
 
 
1,362

 
(133
)
 
1,229

 
1,217

 
(63
)
 
1,154

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade names and trademarks
 
 
420

 
—

 
420

 
365

 
—

 
365

Total
 
 
$
1,782

 
$
(133
)
 
$
1,649

 
$
1,582

 
$
(63
)
 
$
1,519



The Company recorded definite-lived and indefinite-lived intangible assets of $133 million as a result of the Öhlins Acquisition. During the six months ended June 30, 2019, the Company made the following adjustments to definite-lived and indefinite-lived intangible assets in the measurement period to the preliminary purchase price allocation for the Acquisitions:
•
a decrease of $2 million was recognized for the Öhlins Acquisition; and
•
a net increase of $71 million was recognized for the Federal-Mogul Acquisition.

The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

The amortization expense associated with definite-lived intangible assets was as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Amortization expense
 
$
33

 
$
—

 
$
68

 
$
1


The expected future amortization expense for the Company's definite-lived intangible assets is as follows:
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024 and thereafter
 
Total
Expected amortization expense
 
$
70

 
$
139

 
$
138

 
$
134

 
$
130

 
$
618

 
$
1,229