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Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Intangible Assets, Net.

Goodwill consists of the following:


	June 30, 2020						December 31, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Impairment		Value		Amount		Impairment		Value

	(in millions)
Automotive	$	341	$	(87)	$	254	$	336	$	(87)	$	249
Food Packaging		6		—		6		6		—		6
Metals		4		—		4		4		—		4
Home Fashion		22		(3)		19		23		—		23
	$	373	$	(90)	$	283	$	369	$	(87)	$	282

Intangible assets, net consists of the following:


	June 30, 2020						December 31, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Value		Amount		Amortization		Value

	(in millions)
Definite-lived intangible assets:
Customer relationships	$	397	$	(166)	$	231	$	397	$	(155)	$	242
Other		273		(157)		116		274		(147)		127
	$	670	$	(323)	$	347	$	671	$	(302)	$	369

Indefinite-lived intangible assets					$	62					$	62
Intangible assets, net					$	409					$	431

Amortization expense associated with definite-lived intangible assets was $10 million and $11 million for the three months ended June 30, 2020 and 2019, respectively, and $21 million and $21 million for the six months ended June 30, 2020 and 2019, respectively. We utilize the straight-line method of amortization, recognized over the estimated useful lives of the assets.

During the first quarter of 2020, due to COVID-19 pandemic and its impact on our Automotive segment’s operations, we performed an interim goodwill impairment analysis. At such time, our Automotive segment had $249 million of goodwill, all of which was allocated to its Service reporting unit. Based on the interim impairment analysis, we determined that the fair value of our Automotive segment’s Service reporting unit was significantly in excess of its carrying value and therefore, no impairment is required.

During the second quarter of 2020, our Home Fashion segment impaired a portion of its goodwill in the amount of $3 million.