Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table summarizes gross carrying amounts and changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020. The Company reorganized its operating segments during the fourth quarter of 2021. Prior year information has been updated to conform with the current year presentation for changes in operating segments discussed in Notes 1 and 23.


	Performance and Essential Materials Segment		Housing and Infrastructure Products Segment		Total
Balance at December 31, 2019	$	898	$	176	$	1,074

Effects of changes in foreign exchange rates	3		6		9
Balance at December 31, 2020	901		182		1,083

Goodwill acquired during the year	—		943		943

Effects of changes in foreign exchange rates	1		(3)		(2)
Balance at December 31, 2021	$	902	$	1,122	$	2,024

As part of the reorganization of operating segments, the Company assessed and re-defined reporting units effective as of the beginning of the fourth quarter of 2021, including reallocation of goodwill on a relative fair value basis as applicable to affected reporting units. Goodwill impairment analyses were performed as of the effective reorganization date both before and after the reorganization. The fair values of the reporting units were determined using both a discounted cash flow methodology and a market value methodology. Based upon this assessment, the Company determined that it was more likely than not that the fair value of the reporting units exceeds its carrying value both prior to the reorganization and after the reorganization.

The discounted cash flow projections were based on a long-term forecast to reflect the cyclicality of the Company's businesses. The forecast was based on prices and spreads projected by IHS Markit ("IHS"), a chemical industry organization offering market and business advisory services for the chemical market, historical results and estimates by management, including its strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included projected sales volumes based on production capacities. The future cash flows were discounted to present value using a discount rate ranging from 8.8% to 10.8%. The significant assumptions used in determining the fair values of the reporting units using the market value methodology include the determination of appropriate market comparables and the estimated multiples of net income before interest expense, income taxes, depreciation and amortization ("EBITDA") a willing buyer is likely to pay.

Prior to the reorganization of the operating segments, the Company performed its annual impairment analysis for the legacy Vinyls segment reporting units during the second quarter of 2021, and determined that it was more likely than not that the fair value of each of the Vinyls segment reporting units exceeds its carrying value.

Intangible Assets

Intangible assets consisted of the following at December 31:


	2021						2020						Weighted Average Life
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Customer relationships	$	1,581	$	(498)	$	1,083	$	845	$	(401)	$	444	15
Other intangible assets:
Licenses and intellectual property	311		(109)		202		178		(94)		84		16
Trade name	342		(63)		279		125		(50)		75		17
Other	34		(18)		16		35		(26)		9		13
Total other intangible assets	$	687	$	(190)	$	497	$	338	$	(170)	$	168

Scheduled amortization of intangible assets for the next five years is as follows: $167, $115, $110, $107 and $98 in 2022, 2023, 2024, 2025 and 2026, respectively.