GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS

The following table summarizes the activity in goodwill:


	Year Ended December 31, 2019
	MIS										MA								Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill
Balance at beginning of year	$	258	$	—	$	258	$	3,535	$	(12)	$	3,523	$	3,793	$	(12)	$	3,781
Additions/ adjustments⁽¹⁾	53		—		53		61		—		61		114		—		114
Foreign currency translation adjustments	4		—		4		(14)		—		(14)		(10)		—		(10)
Divestiture of MAKS (See Note 10)	—		—		—		(163)		—		(163)		(163)		—		(163)
Ending balance	$	315	$	—	$	315	$	3,419	$	(12)	$	3,407	$	3,734	$	(12)	$	3,722


	Year Ended December 31, 2018
	MIS										MA								Consolidated
	Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill		Gross goodwill		Accumulated impairment charge		Net goodwill
Balance at beginning of year	$	285	$	—	$	285	$	3,480	$	(12)	$	3,468	$	3,765	$	(12)	$	3,753
Additions/ adjustments ⁽²⁾	—		—		—		211		—		211		211		—		211
Foreign currency translation adjustments	(27)		—		(27)		(156)		—		(156)		(183)		—		(183)
Ending balance	$	258	$	—	$	258	$	3,535	$	(12)	$	3,523	$	3,793	$	(12)	$	3,781

⁽¹⁾The 2019 additions/adjustments for the MIS segment in the table above relate to the acquisitions of Vigeo Eiris and Four Twenty Seven. The 2019 additions/adjustments for the MA segment in the table above relate to the acquisitions of RiskFirst and ABS Suite.

⁽²⁾The 2018 additions/adjustments for the MA segment in the table above primarily relate to the acquisitions of Reis and Omega Performance.

Acquired intangible assets and related amortization consisted of:


	December 31,
	2019		2018
Customer relationships	$	1,325	$	1,368
Accumulated amortization	(235)		(214)
Net customer relationships	1,090		1,154
Trade secrets	30		30
Accumulated amortization	(29)		(28)
Net trade secrets	1		2
Software/product technology	372		353
Accumulated amortization	(131)		(102)
Net software/product technology	241		251
Trade names	150		155
Accumulated amortization	(30)		(34)
Net trade names	120		121
Other⁽¹⁾	80		70
Accumulated amortization	(34)		(32)
Net other	46		38
Total	$	1,498	$	1,566

⁽¹⁾Other intangible assets primarily consist of databases, covenants not to compete, and acquired ratings methodologies and models.

Amortization expense relating to acquired intangible assets is as follows:


	Year Ended December 31,
	2019		2018		2017
Amortization expense	$	103	$	102	$	61

Estimated future annual amortization expense for intangible assets subject to amortization is as follows:


Year Ending December 31,
2020	$	99
2021	99
2022	99
2023	96
2024	94
Thereafter	1,011
Total estimated future amortization	$	1,498

Matters concerning the ICRA reporting unit

On August 29, 2019, the board of directors of ICRA terminated the employment of ICRA's CEO and on September 28, 2019, the shareholders of ICRA voted to remove the former CEO from his position on ICRA's board of directors. ICRA has reported that the Securities and Exchange Board of India (SEBI) issued an adjudication order dated December 26, 2019 imposing a penalty of INR 25 lakh (approximately $35,000) on ICRA in connection with credit ratings assigned to one of ICRA’s customers and the customer’s subsidiaries. ICRA has further reported that: (i) it is appealing that order; and (ii) it has received a related "show cause" notice from SEBI asking ICRA to demonstrate why the penalty imposed should not be increased. In addition, ICRA has disclosed that it is addressing anonymous allegations that were forwarded to ICRA by SEBI, as well as certain additional allegations made during the course of the ongoing internal examination into those anonymous allegations. As of the date of this annual report on Form 10-K, the Company is unable to estimate the financial impact, if any, that may result from a potential unfavorable conclusion of these matters or any other ICRA inquiry. An unfavorable resolution of such matters may negatively impact ICRA’s future operating results, which could result in an impairment of goodwill and amortizable intangible assets in future quarters.