XML 109 R39.htm IDEA: XBRL DOCUMENT

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of Goodwill by Reporting Segment

The changes in the carrying amount of goodwill by reporting units, which represent our reporting segments, for 2019 were as follows:

	NCSA			EARC			MENA		Technology			Total
	(In millions)
Balance as of December 31, 2018 ⁽¹⁾	$	1,041		$	421		$	46	$	1,146		$	2,654
Adjustments to finalize purchase accounting estimates⁽²⁾		160			-			4		4			168
Allocation to APP disposition		(90	)		-			-		-			(90	)
Currency translation adjustments		-			(5	)		-		(11	)		(16	)
Goodwill impairment		(1,111	)		(319	)		-		-			(1,430	)
Balance as of December 31, 2019	$	-		$	97		$	50	$	1,139		$	1,286

⁽¹⁾	As of December 31, 2018, we had approximately $2.2 billion of cumulative impairment charges recorded in conjunction with our impairment assessment performed during the fourth quarter of 2018, as previously described in the 2018 Form 10-K.

⁽²⁾	Our purchase accounting allocation was finalized in the second quarter of 2019. See Note 3, Business Combination, for further discussion.

Schedule of Key Assumptions Used in Deriving Reporting Units Fair Value

Key assumptions used in deriving the reporting units’ fair values in our interim quantitative impairment assessment were as follows:

	Discount rate			Compound annual growth rate			Terminal growth rate
NCSA		33.0	%		29	%		2	%
EARC		33.5	%		46	%		2	%
MENA		34.0	%		17	%		2	%
Technology		15.0	%		8	%		2	%

Schedule of Intangible Assets

Our other intangible assets at December 31, 2019 and 2018, including the December 31, 2019 weighted-average useful lives, were as follows:

			December 31, 2019							December 31, 2018
	Weighted Average Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(In years)		(In millions)
Process technologies		27	$	509	$	(36	)	$	473	$	514	$	(14	)	$	500
Trade names		13		212		(31	)		181		401		(23	)		378
Customer relationships		10		123		(47	)		76		129		(23	)		106
Trademarks		10		26		(5	)		21		27		(2	)		25
Total⁽¹⁾		21	$	870	$	(119	)	$	751	$	1,071	$	(62	)	$	1,009

⁽¹⁾

The decrease in other intangible assets during 2019 primarily related to an impairment charge of $159 million, amortization expense of $87 million, intangible assets allocated to the disposition of APP and the impact of foreign currency translation, partially offset by an increase of approximately $6 million due to the acquisition of the assets of Siluria, discussed in Note 4, Acquisition and Disposition Transactions. Amortization expense is anticipated to be $75 million, $64 million, $52 million, $51 million and $50 million for 2020, 2021, 2022, 2023 and 2024, respectively.

Our project-related intangibles at December 31, 2019 and 2018, including the December 31, 2019 weighted-average useful lives, were as follows:

			December 31, 2019									December 31, 2018
	Weighted Average Useful Life		Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
	(In years)		(In millions)
Project-related intangible assets		4	$	246		$	(198	)	$	48		$	259		$	(122	)	$	137
Project-related intangible liabilities		2		(109	)		99			(10	)		(109	)		43			(66	)
Total ⁽¹⁾			$	137		$	(99	)	$	38		$	150		$	(79	)	$	71

⁽¹⁾

The decrease in project-related intangible assets during 2019 primarily related to net amortization expense of $34 million, impairment of $3 million and the impact of foreign currency translation. Net amortization expense is anticipated to be $22 million, $5 million, $8 million and $2 million for 2020, 2021, 2022 and 2023, respectively.