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Intangible Assets, net and Goodwill
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net and Goodwill
Intangible Assets, net
Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives of two to fifteen years with no estimated residual values, which materially approximates the expected pattern of use. Factors considered when assigning useful lives include legal, regulatory and contractual provisions, product obsolescence, demand, competition and other economic factors. The following tables present certain information regarding our intangible assets as of December 31, 2022 and 2021.
As of December 31,
20222021
Gross Carrying
Value		Accumulated
Amortization		Net BalanceGross Carrying
Value		Accumulated
Amortization		Net Balance
Amortizable intangible assets:   
Customer relationships$902 $(503)$399 $911 $(445)$466 
Intellectual property
948 (714)234 914 (670)244 
Licenses371 (273)98 472 (380)92 
Brand names129 (108)21 132 (97)35 
Trade names162 (122)40 158 (54)104 
Patents and other12 (7)5 12 (7)5 
Total intangible assets$2,524 $(1,727)$797 $2,599 $(1,653)$946 
The following reflects intangible amortization expense included within D&A:
Year Ended December 31,
202220212020
Amortization expense$239 $197 $207 
Estimated intangible asset amortization expense for the year ending December 31, 2023 and each of the subsequent four years:
Year Ending December 31,
20232024202520262027
Amortization expense$196 $149 $118 $104 $95 
During the fourth quarter of 2021 and as a result of corporate-wide rebranding, we determined that useful lives for certain of our finite-lived and previously indefinite-lived trade names in our Gaming business segment warranted a change. We first performed an impairment assessment, which indicated that carrying values of these trade names were not impaired. The change in useful life determination was treated as a change in estimate with a $109 million carrying value of these legacy trade names being amortized on a straight-line basis beginning in the fourth quarter of 2021 over twenty months, which materially approximates the expected pattern of use and period over which these legacy trade names are expected to contribute to the future cash flows of their respective asset groups. The incremental expense of this change for the years ended December 31, 2022 and 2021 was $59 million and $10 million, respectively, and recorded in D&A.
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). Any 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.
Goodwill
The table below reconciles the change in the carrying value of goodwill, by business segment, for the period from December 31, 2020 to December 31, 2022.
Gaming(1)
SciPlayiGamingTotals
Balance as of December 31, 2020
$2,425 $124 $181 $2,730 
Acquired goodwill— — 191 191 
Foreign currency adjustments(20)2 (11)(29)
Balance as of December 31, 2021
2,405 126 361 2,892 
Acquired goodwill— 93 8 101 
Foreign currency adjustments(32)(6)(36)(74)
Balance as of December 31, 2022
$2,373 $213 $333 $2,919 
(1) Accumulated goodwill impairment charges for the Gaming segment as of December 31, 2022 were $989 million.
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 it is more likely than not that the fair value of a reporting unit is less than its carrying value, which is commonly referred to as “Step 0.” If it is determined that it is not more likely than not that the fair value is less than the carrying value, goodwill is not considered impaired. For reporting units where we perform the quantitative test, we are required to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows and a market approach, to the respective carrying value, which includes goodwill. 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 the quantitative test, not to exceed the total amount of goodwill allocated to that reporting unit.    
We review our operating segments in accordance with ASC 350 to determine reporting units within our operating segments based on the availability of discrete financial information that is regularly reviewed by segment management. We determined that we have six reporting units: Gaming, U.K. Gaming, Casino Management Systems, Table Products, SciPlay, and iGaming. For business segment information, see Note 3.
Our annual goodwill impairment tests as of October 1, 2022 indicated it was more likely than not that the fair values of each of our reporting units that have goodwill exceeded their respective carrying values.
2020 U.K. Gaming Impairment Charge
As a result of deterioration in business conditions in 2019 and COVID-19 disruptions and global economic uncertainty in 2020, we performed a quantitative goodwill impairment test for our U.K. Gaming reporting unit (part of our Gaming business segment) during the first quarter of 2020. We performed this quantitative impairment test by comparing the fair value of our U.K. Gaming reporting unit to its carrying value, including goodwill. The fair value of our U.K. Gaming reporting unit was determined using a combination of both an income approach, based on the present value of discounted cash flows, and a market approach. Due to market volatility and limited market data points specific to the nature of our U.K. Gaming reporting unit operations, we placed greater weight on the income approach than on the market approach. As a result of this analysis, we recognized an impairment charge of $54 million, which is the amount by which the carrying value exceeded the estimated fair value. This impairment charge resulted in no tax benefit.