Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The following table details the changes in the carrying amount of goodwill:



	Engineered Products and Solutions			Global Rolled Products			Transportation and Construction Solutions			Corporate*		Total
Balances at December 31, 2015
Goodwill	$	4,660		$	201		$	111		$	330	$	5,302
Accumulated impairment losses	—			—			(53		)	—		(53		)
	4,660			201			58			330		5,249
Acquisitions and Divestitures (F)	47			—			—			—		47
Translation and other	(128		)	(20		)	(1		)	1		(148		)
Balances at December 31, 2016
Goodwill	4,579			181			110			331		5,201
Accumulated impairment losses	—			—			(53		)	—		(53		)
	4,579			181			57			331		5,148
Impairment (A)	(719		)	—			—			—		(719		)
Translation and other	89			12			3			2		106
Balances at December 31, 2017
Goodwill	4,668			193			113			333		5,307
Accumulated impairment losses	(719		)	—			(53		)	—		(772		)
	$	3,949		$	193		$	60		$	333	$	4,535

As of December 31, 2017, the amount reflected in Corporate is allocated to Arconic’s three reportable segments ($256 to Engineered Products and Solutions, $59 to Global Rolled Products and $18 to Transportation and Construction Solutions) for purposes of impairment testing (see Goodwill policy in Note A). This goodwill is reflected in Corporate for segment reporting purposes because it is not included in management’s assessment of performance by the three reportable segments.

In 2017, Arconic recognized an impairment of goodwill in the amount of $719 related to the annual impairment review of the AFE reporting unit which is included in the Engineered Products and Solutions segment. In 2015, Arconic recognized an impairment of goodwill in the amount of $25 related to the annual impairment review of the soft alloy extrusion business reporting unit which is included in the Transportation and Construction Solutions segment (see Goodwill policy in Note A).

Other intangible assets were as follows:



December 31, 2017	Gross carrying amount		Accumulated amortization
Computer software	$	789	$	(674	)
Patents and licenses	110		(107		)
Other intangibles	953		(116		)
Total amortizable intangible assets	1,852		(897		)
Indefinite-lived trade names and trademarks	32		—
Total other intangible assets	$	1,884	$	(897	)



December 31, 2016	Gross carrying amount		Accumulated amortization
Computer software	$	755	$	(623	)
Patents and licenses	110		(102		)
Other intangibles	897		(81		)
Total amortizable intangible assets	1,762		(806		)
Indefinite-lived trade names and trademarks	32		—
Total other intangible assets	$	1,794	$	(806	)

Computer software consists primarily of software costs associated with an enterprise business solution (EBS) within Arconic to drive common systems among all businesses.

Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2017, 2016, and 2015 was $71, $65, and $67, respectively, and is expected to be in the range of approximately $60 to $75 annually from 2018 to 2022.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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