Goodwill and Other Intangible Assets, net

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill and other intangible assets, net, by segment were as follows:



	Goodwill				Other Intangible Assets, net
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
Smokeable products	$	99	$	99	$	3,077	$	3,037
Smokeless products	5,089		5,023		9,189		8,825
Wine	74		74		238		239
Other	—		—		184		178
Total	$	5,262	$	5,196	$	12,688	$	12,279

The change in goodwill relates to the 2019 acquisition of the Burger Group. For additional information, see Note 1. Background and Basis of Presentation.

Other intangible assets consisted of the following:



	September 30, 2019				December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(in millions)
Indefinite-lived intangible assets	$	11,846	$	—	$	11,846	$	—
Definite-lived intangible assets	1,090		248		654		221
Total other intangible assets	$	12,936	$	248	$	12,500	$	221

At September 30, 2019, indefinite-lived intangible assets consist substantially of trademarks from Altria’s 2009 acquisition of UST ($9.0 billion) and 2007 acquisition of Middleton ($2.6 billion). Definite-lived intangible assets, which consist primarily of intellectual property, customer relationships and certain cigarette trademarks, are amortized over a weighted-average period of 19 years. Pre-tax amortization expense for definite-lived intangible assets was $28 million and $30 million for the nine months ended September 30, 2019 and 2018, respectively, and $12 million and $20 million for the three months ended September 30, 2019 and 2018, respectively. Annual amortization expense for each of the next five years is estimated to be approximately $63 million, assuming no additional transactions occur that require the amortization of intangible assets.

The changes in goodwill and net carrying amount of intangible assets were as follows:



	For the Nine Months Ended September 30, 2019					For the Year Ended December 31, 2018
	Goodwill		Other Intangible Assets, net			Goodwill			Other Intangible Assets, net
	(in millions)
Balance at January 1	$	5,196	$	12,279		$	5,307		$	12,400
Changes due to:
Acquisitions ⁽¹⁾	66		437			—			15
Asset impairment ⁽²⁾	—		—			(111		)	(98		)
Amortization	—		(28		)	—			(38		)
Balance at End of Period	$	5,262	$	12,688		$	5,196		$	12,279

⁽¹⁾ Substantially all of the 2019 changes reflect the acquisition of the Burger Group, which held assets consisting primarily of intellectual property.

⁽²⁾ Reflects asset impairment of goodwill and other intangible assets, net, related to e-vapor products and the Columbia Crest trademark.