Our goodwill balance is attributable to the excess of the purchase price over the fair value of net assets acquired in connection with the Combination.

As discussed in Note 1, Nature of Operations and Organization, and Note 22, Segment Reporting, in the third quarter of 2019, we terminated the previously announced sale process for our industrial storage tank business. As a result of our decision to retain that business, starting January 1, 2020, we changed the structure of our internal organization and formed a new segment for our industrial storage tank business (“Storage Solutions”). Previously disclosed reporting segment financial information has been recast to reflect the above change.

Goodwill attributable to the Storage Solutions reporting segment, which also represents a reporting unit, was allocated from our EARC and MENA reporting units based on the relative fair values of the operations transferred pursuant to the reorganization. The goodwill allocated to Storage Solutions was $9 million as of January 1, 2020.

The changes in the carrying amount of goodwill during the three months ended March 31, 2020 were as follows:

	EARC			MENA		Storage Solutions		Total
	(In millions)
Balance as of January 1, 2020 ⁽¹⁾	$	91		$	47	$	9	$	147
Goodwill impairment		(91	)		-		-		(91	)
Balance as of March 31, 2020	$	-		$	47	$	9	$	56

Discontinued Operations— In connection with the entry of the Confirmation Order, the Lummus Technology sale, primarily represented by our Technology reporting segment, was approved by the Bankruptcy Court, as discussed in Note 3, Reorganization. During the first quarter of 2020, we classified our Technology reporting segment as a discontinued operation. Goodwill associated with our Technology reporting segment was approximately $1.1 billion as of March 31, 2020 and December 31, 2019.

Impairment Assessment—Following our reorganization and new reporting structure with Storage Solutions as a reporting unit as of January 1, 2020, goodwill impairment assessments were performed on our EARC, MENA and Storage Solutions reporting units.

Based on our quantitative assessments, we determined that, as of March 31, 2020, the goodwill associated with our EARC reporting unit was fully impaired, primarily due to updates to the 2020 management budget. We determined the goodwill associated with our MENA and Storage Solutions reporting units was not impaired, as the fair value of each such reporting unit exceeded its net book value by 219% and 143%, respectively. The EARC goodwill impairment did not have a net tax benefit.

Key assumptions used in deriving the reporting units’ fair values included the use of significant unobservable inputs, representative of a Level 3 fair value measurement, and included, but were not limited to, the following assumptions:

	Discount rate			Compound annual growth rate			Terminal growth rate
EARC		35.5	%		41.3	%		2	%
MENA		37.0	%		24.0	%		2	%
Storage Solutions		18.5	%		39.7	%		2	%

During the first quarter of 2020, we determined there were indicators of impairment related to our NCSA trade names intangible asset, resulting from incremental unfavorable changes in estimates to complete certain key projects (see Note 5, Revenue Recognition, and Note 6, Project Changes in Estimates, for discussion). This determination resulted in a decrease in our future attributable cash flow expectations.

A test of recoverability was performed as of March 31, 2020, indicating that the NCSA trade names intangible asset had an undiscounted value below carrying value. As a result, we determined the fair value of the trade names intangible asset, resulting in an impairment of $3 million. Key inputs leading to the impairment included updated estimated attributable cash flows based on revenue obsolescence assumptions and reductions in management’s budget. The fair value of the impaired intangible asset was determined using an income approach and was estimated based on the present value of projected future cash flows attributable to the asset. These estimates were based on unobservable inputs requiring significant judgment and were representative of a Level 3 fair value measurement.

Our other intangible assets associated with our reporting segments included in continuing operations as of March 31, 2020 and December 31, 2019, including the weighted-average useful lives as of March 31, 2020, were as follows:

			March 31, 2020							December 31, 2019
	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		10	$	80	$	(15	)	$	65	$	80	$	(13	)	$	67
Trade names		10		121		(26	)		95		125		(22	)		103
Customer relationships		5		14		(9	)		5		14		(8	)		6
Trademarks		10		4		(1	)		3		4		(1	)		3
Total⁽¹⁾			$	219	$	(51	)	$	168	$	223	$	(44	)	$	179

Our project-related intangibles as of March 31, 2020 and December 31, 2019, including the weighted-average useful lives as of March 31, 2020, were as follows:

			March 31, 2020									December 31, 2019
	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		3	$	166		$	(139	)	$	27		$	166		$	(133	)	$	33
Project-related intangible liabilities		2		(109	)		101			(8	)		(109	)		99			(10	)
Total ⁽¹⁾			$	57		$	(38	)	$	19		$	57		$	(34	)	$	23

Other intangible assets and project-related intangibles associated with discontinued operations, primarily represented by our Technology segment, were $561 million and $13 million as of March 31, 2020, and $573 million and $15 million as of December 31, 2019, respectively.