Goodwill And Other Intangibles (Note)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

The following table presents changes in the goodwill balances as allocated to each business segment for the years ended December 31, 2020 and 2019:


In millions	Industrial Packaging			Global Cellulose Fibers			Printing Papers			Total
Balance as of December 31, 2018
Goodwill	$	3,379		$	52		$	2,116		$	5,547
Accumulated impairment losses	(296)			—			(1,877)			(2,173)
	3,083			52			239			3,374
Currency translation and other (a)	—			—			(6)			(6)
Goodwill additions/reductions	31		(b)(c)	—			(112)		(d)	(81)
Accumulated impairment loss additions/reductions	—			(52)		(e)	112		(d)	60
Balance as of December 31, 2019
Goodwill	3,410			52			1,998			5,460
Accumulated impairment losses	(296)			(52)			(1,765)			(2,113)
	3,114			—			233			3,347
Currency translation and other (a)	5			—			(33)			(28)
Goodwill additions/reductions	(5)		(b)(c)	—			1			(4)
Balance as of December 31, 2020
Goodwill	3,410			52			1,966			5,428
Accumulated impairment losses	(296)			(52)			(1,765)			(2,113)
Total	$	3,114		$	—		$	201		$	3,315

(a)Represents the effects of foreign currency translations and reclassifications.

(b)Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in the U.S.

(c)Reflects the goodwill for the acquisitions and divestitures of Industrial Packaging box plants in EMEA.

(d)Reflects the reclassification of India goodwill and related impairment losses to held for sale prior to the sale of the business.

(e)Reflects the impairment of the Global Cellulose Fibers reporting unit.

The Company performed its annual testing of its reporting units for possible goodwill impairments by applying the quantitative goodwill impairment test to its North America Industrial Packaging, EMEA Industrial Packaging, European Papers, Russian Papers, and Brazilian Papers reporting units as of October 1, 2020. The Company elected to perform the quantitative goodwill impairment test due to the current economic environment. The quantitative goodwill impairment test was performed by comparing the carrying amount of each respective reporting unit to its estimated fair value. The Company calculated the estimated fair value of each of its reporting units with goodwill using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. The carrying amount did not exceed the estimated fair value of any reporting units.

In addition, the Company considered whether there were any events or circumstances outside of the annual evaluation that would reduce the fair value of its reporting units below their carrying amounts and necessitate a goodwill impairment evaluation. In consideration of all relevant factors, there were no indicators that would require goodwill impairment subsequent to October 1, 2020.

In the fourth quarter of 2019, in conjunction with the annual testing of its reporting units for possible goodwill impairments, the Company calculated the estimated fair value of the Global Cellulose Fibers reporting unit, and it was determined that all of the goodwill in the reporting unit, totaling $52 million, was impaired. This impairment charge was recognized during the fourth quarter of 2019.

OTHER INTANGIBLES

Identifiable intangible assets comprised the following:


	2020						2019
In millions at December 31	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	542	$	294	$	248	$	560	$	275	$	285
Tradenames, patents and trademarks, and developed technology	170		117		53		170		102		68
Land and water rights	8		2		6		8		2		6
Software	25		24		1		26		25		1
Other	19		10		9		18		10		8
Total	$	764	$	447	$	317	$	782	$	414	$	368

The Company recognized the following amounts as amortization expense related to intangible assets:


In millions	2020		2019		2018
Amortization expense related to intangible assets	$	60	$	58	$	59

Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2021 – $51 million, 2022 – $46 million, 2023 – $41 million, 2024 – $41 million, 2025 – $36 million, and cumulatively thereafter – $96 million.