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Intangible assets and goodwill
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets and goodwill
Intangible assets and goodwill

A.
Intangible assets
 
Intangible assets are comprised of the following:
 
 
 
 
 
December 31, 2018
(Millions of dollars)
 
Weighted
Amortizable
Life (Years)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Customer relationships
 
15
 
$
2,463

 
$
(1,249
)
 
$
1,214

Intellectual property
 
11
 
1,557

 
(965
)
 
592

Other
 
13
 
199

 
(108
)
 
91

Total finite-lived intangible assets
 
14
 
$
4,219

 
$
(2,322
)
 
$
1,897

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
Weighted
Amortizable
Life (Years)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Customer relationships
 
15
 
$
2,441

 
$
(1,122
)
 
$
1,319

Intellectual property
 
11
 
1,538

 
(851
)
 
687

Other
 
13
 
198

 
(93
)
 
105

Total finite-lived intangible assets
 
14
 
$
4,177

 
$
(2,066
)
 
$
2,111

 
 
 
 
 
 
 
 
 

 
During 2018, we acquired finite-lived intangible assets of $112 million and $6 million due to the purchase of ECM S.p.A. and Downer Freight Rail, respectively. See Note 24 for details on these acquisitions.

Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.

In 2016, gross customer relationship intangibles of $96 million and related accumulated amortization of $27 million as well as gross intellectual property intangibles of $111 million and related accumulated amortization of $48 million from the Resource Industries segment were impaired. The fair value of these intangibles was determined to be insignificant based on an income approach using expected cash flows. The fair value determination is categorized as Level 3 in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. The total impairment of $132 million was a result of restructuring activities and is included in Other operating (income) expense in Statement 1. See Note 25 for information on restructuring costs.

Amortization expense related to intangible assets was $331 million, $323 million and $326 million for 2018, 2017 and 2016, respectively.

As of December 31, 2018, amortization expense related to intangible assets is expected to be: 

(Millions of dollars)
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
$
326

 
$
311

 
$
293

 
$
274

 
$
216

 
$
477

 
 
 
 
 
 
 
 
 
 
 

 
B.
Goodwill
 
In 2018, we acquired net assets with related goodwill of $127 million in the Energy & Transportation segment. We recorded goodwill of $109 million related to the acquisition of ECM S.p.A. and $18 million related to the acquisition of Downer Freight Rail. See Note 24 for details on these acquisitions.

There were no goodwill impairments during 2018 or 2017.

The annual impairment test completed in the fourth quarter of 2016 indicated that the fair value of the Surface Mining & Technology reporting unit was below its carrying value requiring the second step of the goodwill impairment test process. The fair value of Surface Mining & Technology was determined primarily using an income approach based on a discounted ten year cash flow. We assigned the fair value to Surface Mining & Technology’s assets and liabilities using various valuation techniques that required assumptions about royalty rates, dealer attrition, technological obsolescence and discount rates. The resulting implied fair value of goodwill was below the carrying value. Accordingly, we recognized a goodwill impairment charge of $595 million, which resulted in goodwill of $629 million remaining for Surface Mining & Technology as of October 1, 2016. The fair value determination is categorized as Level 3 in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. There was a $17 million tax benefit associated with this impairment charge.
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2018 and 2017 were as follows:

(Millions of dollars)
 
December 31, 2017
 
Acquisitions
 
Other Adjustments 1
 
December 31, 2018
Construction Industries
 
 
 
 
 
 
 
 
Goodwill
 
$
305

 
$
—

 
$
(1
)
 
$
304

Impairment
 
(22
)
 
—

 
—

 
(22
)
Net goodwill
 
283

 
—

 
(1
)
 
282

Resource Industries
 
 
 
 
 
 
 
 
Goodwill
 
4,232

 
—

 
(60
)
 
4,172

Impairment
 
(1,175
)
 
—

 
—

 
(1,175
)
Net goodwill
 
3,057

 
—

 
(60
)
 
2,997

Energy & Transportation
 
 
 
 
 
 
 
 
Goodwill
 
2,806

 
127

 
(51
)
 
2,882

All Other 2
 
 
 
 
 
 
 
 
Goodwill
 
54

 
—

 
2

 
56

Consolidated total
 
 
 
 
 
 
 
 
Goodwill
 
7,397

 
127

 
(110
)
 
7,414

Impairment
 
(1,197
)
 
—

 
—

 
(1,197
)
Net goodwill
 
$
6,200

 
$
127

 
$
(110
)
 
$
6,217

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
Acquisitions
 
Other Adjustments 1
 
December 31, 2017
Construction Industries
 
 
 
 
 
 
 
 
Goodwill
 
$
296

 
$
—

 
$
9

 
$
305

Impairment
 
(22
)
 
—

 
—

 
(22
)
Net goodwill
 
274

 
—

 
9

 
283

Resource Industries
 
 
 
 
 
 
 
 
Goodwill
 
4,110

 
—

 
122

 
4,232

Impairment
 
(1,175
)
 
—

 
—

 
(1,175
)
Net goodwill
 
2,935

 
—

 
122

 
3,057

Energy & Transportation
 
 
 
 
 
 
 
 
Goodwill
 
2,756

 
—

 
50

 
2,806

All Other 2
 
 
 
 
 
 
 
 
Goodwill
 
55

 
—

 
(1
)
 
54

Consolidated total
 
 
 
 
 
 
 
 
Goodwill
 
7,217

 
—

 
180

 
7,397

Impairment
 
(1,197
)
 
—

 
—

 
(1,197
)
Net goodwill
 
$
6,020

 
$
—

 
$
180

 
$
6,200


1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other operating segments (See Note 23).