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Intangible Assets, net and Goodwill
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net and Goodwill Intangible Assets, net and Goodwill
Intangible Assets, net    
The following tables present certain information regarding our intangible assets as of December 31, 2019 and 2018. Amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives with no estimated residual values, which materially approximates the expected pattern of use.
 
December 31, 2019
 
December 31, 2018

Gross Carrying
Value

Accumulated
Amortization
 
Net Balance
 
Gross Carrying
Value
 
Accumulated
Amortization
 
Net Balance
Amortizable intangible assets:
 

 
 
 
 
 
 
 
 
 
Customer relationships
$
1,086

 
$
(383
)
 
$
703

 
$
1,084

 
$
(299
)
 
$
785

Intellectual property 
931

 
(563
)
 
368

 
931

 
(453
)
 
478

Licenses
548

 
(329
)
 
219

 
546

 
(253
)
 
293

Brand names
123

 
(72
)
 
51

 
123

 
(59
)
 
64

Trade names
116

 
(31
)
 
85

 
108

 
(23
)
 
85

Patents and other
24

 
(15
)
 
9

 
23

 
(13
)
 
10


2,828

 
(1,393
)
 
1,435

 
2,815

 
(1,100
)
 
1,715

Non-amortizable intangible assets:
 

 
 
 
 
 
 
 
 
 
Trade names
83

 
(2
)
 
81

 
96

 
(2
)
 
94

Total intangible assets
$
2,911

 
$
(1,395
)
 
$
1,516

 
$
2,911

 
$
(1,102
)
 
$
1,809


The following reflects intangible amortization expense included within D&A:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Amortization expense
$
306

 
$
297

 
$
260


Estimated intangible asset amortization expense for the year ending December 31, 2020 and each of the subsequent four years:
 
Year Ending December 31,
 
2020
 
2021
 
2022
 
2023
 
2024
Amortization expense
$
250

 
$
219

 
$
211

 
$
184

 
$
167


Goodwill

In conjunction with integrating our Digital segment acquisitions, the implementation of ERP systems in the Digital segment and management changes during the first quarter of 2019, in our Digital business segment, we reviewed our Digital operating segment in accordance with ASC 350 to determine if additional reporting units exist based on the availability of discrete financial information that is regularly reviewed by segment management. We determined that in our Digital operating segment we now have two reporting units: (1) Digital sports and platform and (2) Digital gaming and other. The change in the Digital business segment reporting units resulted in the allocation of the previous Digital reporting unit goodwill balance as follows: $230 million to the new Digital sports and platform reporting unit and $134 million to the new Digital gaming and other reporting unit, which allocation was determined based on the relative fair value approach prescribed by ASC 350. As a result of this change we now have ten reporting units: Instant Products, U.S. Lottery Systems, International Lottery Systems, SG Gaming, legacy U.K. Gaming, Casino Management Systems, Table Products, SciPlay, Digital sports and platform and Digital gaming and other.

The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2017 to December 31, 2019.
 
 
Gaming(1)
 
Lottery(2)
 
Interactive
 
SciPlay
 
Digital
 
Totals
Balance as of December 31, 2017
 
$
2,476

 
$
356

 
$
124

 
$
—

 
$
—

 
$
2,956

Reporting unit reallocation adjustment
 
—

 
—

 
(124
)
 
117

 
7

 
—

Acquired goodwill
 
—

 
—

 
—

 
—

 
379

 
379

Foreign currency adjustments
 
(27
)
 
(4
)
 
—

 
(2
)
 
(22
)
 
(55
)
Balance as of December 31, 2018
 
2,449

 
352

 
—

 
115

 
364

 
3,280

Foreign currency adjustments
 
—

 
(3
)
 
—

 
—

 
3

 
—

Balance as of December 31, 2019
 
$
2,449

 
$
349

 
$
—

 
$
115

 
$
367

 
$
3,280

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Accumulated goodwill impairment charges for the Gaming segment as of December 31, 2019 were $935 million.
(2) Accumulated goodwill impairment charges for the Lottery segment as of December 31, 2019 were $137 million.

Goodwill and intangible assets with indefinite useful lives
Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed of acquired companies. We test goodwill for impairment annually as of October 1 of each fiscal year or more frequently if events arise or circumstances change that indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value.
We evaluate goodwill at the reporting unit level by comparing the carrying value of each reporting unit to its fair value using a quantitative impairment test or qualitative assessment, as deemed appropriate. Under the qualitative assessment option, we first assess qualitative factors to determine whether the fair value of a reporting unit is not “more than likely” less than its carrying value, which is commonly referred to as “Step 0”. If the fair value of the reporting unit is greater or if it is more likely than not that the fair value of the reporting unit is greater than its carrying value, goodwill is not considered impaired. If the fair value of the reporting unit is less than its carrying value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value determined based on a quantitative test, not to exceed the total amount of goodwill allocated to that reporting unit.    
Our annual goodwill impairment tests as of October 1, 2019 indicated estimated fair values were in excess of their carrying values for each of our reporting units that have goodwill balances.
We conduct impairment tests of our indefinite-lived assets annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of an indefinite-lived asset is less than its carrying value or when circumstances no longer continue to support an indefinite useful life.
Our annual impairment tests as of October 1, 2019 indicated estimated fair values were more likely than not in excess of the carrying values for all of our remaining indefinite-lived intangible assets.
Other long-lived assets and intangible assets with finite useful lives
Intangible assets with finite useful lives are amortized over two to fifteen years using the straight-line method, which materially approximates the pattern of the assets’ use. Factors considered when assigning useful lives include legal, regulatory and contractual provisions, product obsolescence, demand, competition and other economic factors.
We assess the recoverability of long-lived assets and intangible assets with finite useful lives whenever events arise or circumstances change that indicate the carrying value of an asset may not be recoverable. Recoverability of long-lived assets (or asset groups) to be held and used is measured by a comparison of the carrying value of the asset (or asset group) to the expected net future undiscounted cash flows to be generated by that asset (or asset group). The amount of impairment of other long-lived assets and intangible assets with finite lives is measured by the amount by which the carrying value of the asset exceeds the fair market value of the asset.