5. Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2015, 2014 and 2013 are as follows:


				North		Latin
	Europe			America		America		Other		Total
Balance as of January 1, 2013	$	1,006	$		743	$	325	$	5	$	2,079
Translation effects		38			(9)		(49)				(20)
Balance as of December 31, 2013		1,044			734		276		5		2,059
Translation effects		(118)			(11)		(37)				(166)
Balance as of December 31, 2014		926			723		239		5		1,893
Acquisitions					316		480				796
Translation effects		(86)			(19)		(95)				(200)
Balance as of December 31, 2015	$	840		$	1,020	$	624	$	5	$	2,489

The acquired goodwill in 2015 primarily relates to the Vitro Acquisition (see Note 18).

Goodwill for the Asia Pacific segment is $0 and net of accumulated impairment losses of $1,135 million as of December 31, 2015, 2014 and 2013.

Goodwill is tested for impairment annually as of October 1 (or more frequently if impairment indicators arise) using a two-step process. Step 1 compares the business enterprise value (“BEV”) of each reporting unit with its carrying value. The BEV is computed based on estimated future cash flows, discounted at the weighted average cost of capital of a hypothetical third-party buyer. If the BEV is less than the carrying value for any reporting unit, then Step 2 must be performed. Step 2 compares the implied fair value of goodwill with the carrying amount of goodwill. Any excess of the carrying value of the goodwill over the implied fair value will be recorded as an impairment loss. The calculations of the BEV in Step 1 and the implied fair value of goodwill in Step 2 are based on significant unobservable inputs, such as price trends, customer demand, material costs, discount rates and asset replacement costs, and are classified as Level 3 in the fair value hierarchy.

During the fourth quarter of 2015, the Company completed its annual impairment testing and determined that no impairment existed.

Intangible assets

On September 1, 2015, the Company acquired customer list intangibles as part of the Vitro Acquisition (see Note 18). The intangibles consist of the following at December 31, 2015:


	As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization		Translation Effects		Net Carrying Amount
Definite-lived intangible assets
Customer list intangibles	$	635	$	(26)	$	(12)	$	597

Customer list intangible assets are amortized using the accelerated amortization method over their 20 year lives. Amortization expense for intangible assets was $26 million, $0 million and $0 million for the years ended December 31, 2015, 2014, 2013, respectively. Estimated amortization related to intangible assets through 2020 is as follows: 2016, $42 million; 2017, $45 million; 2018, $44 million; 2019, $44 million; and 2020, $42 million. No impairment existed on these assets at December 31, 2015.

The Company has determined that the fair value measurements related to the customer list intangibles are based on significant unobservable inputs and are classified as Level 3 in the fair value hierarchy.