Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

6.    Goodwill and Other Intangible Assets

Goodwill was $6,532 million and $6,430 million as of December 31, 2019 and 2018, respectively. The $102 million increase in goodwill during 2019 is primarily related to acquisitions partially offset by impairment charges, which are discussed below, and translation adjustments related to our Canadian operations.

As discussed in Note 3, we perform our annual impairment test of goodwill balances for our reporting units using a measurement date of October 1. We will also perform interim tests if an impairment indicator exists. As a result of our annual impairment test performed in the fourth quarter of 2019, we recorded goodwill impairment charges of $27 million, of which $17 million related to our EES organization and $10 million related to our LampTracker^® reporting unit, because the carrying value including goodwill exceeded the estimated fair value. Fair value was estimated using an income approach based on long-term projected discounted future cash flows of the reporting unit (Level 3).

See Notes 12, 18 and 20 for additional information related to goodwill.

Our other intangible assets consisted of the following as of December 31 (in millions):

	Customer		Covenants		Licenses,
	and Supplier		Not-to-		Permits
	Relationships		Compete		and Other		Total
2019
Intangible assets	$	906	$	72	$	110	$	1,088
Less: Accumulated amortization		(469)		(36)		(62)		(567)
	$	437	$	36	$	48	$	521
2018
Intangible assets	$	949	$	60	$	109	$	1,118
Less: Accumulated amortization		(461)		(24)		(61)		(546)
	$	488	$	36	$	48	$	572

Amortization expense for other intangible assets was $106 million, $101 million and $96 million for 2019, 2018 and 2017, respectively. As of December 31, 2019, we had $19 million of licenses, permits and other intangible assets that are not subject to amortization because they do not have stated expirations or have routine, administrative renewal processes. Additional information related to other intangible assets acquired through business combinations is included in Note 18. As of December 31, 2019, we expect annual amortization expense related to other intangible assets to be $99 million in 2020, $85 million in 2021, $70 million in 2022, $61 million in 2023 and $56 million in 2024.