Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Goodwill

Changes in the net carrying value of goodwill by segment were as follows (in millions):

	AIT		EVM		Total
Goodwill as of December 31, 2018	$	154	$	2,341	$	2,495
Xplore purchase price allocation adjustments	—		(6)		(6)
Temptime acquisition	73		—		73
Profitect acquisition	—		54		54
Cortexica acquisition	—		4		4
Foreign exchange impact	—		2		2
Goodwill as of December 31, 2019	$	227	$	2,395	$	2,622
Temptime purchase price allocation adjustments	1		—		1
Reflexis acquisition	—		364		364
Foreign exchange impact	—		1		1
Goodwill as of December 31, 2020	$	228	$	2,760	$	2,988

See Note 5, Business Acquisitions for further details related to the Company’s acquisitions and purchase price allocation adjustments.

The Company’s goodwill balance consists of five reporting units. The Company completed its annual goodwill impairment testing during the fourth quarter of 2020 utilizing a quantitative approach. The estimated fair value of each reporting unit exceeded its carrying value by at least 80%. There is risk of future impairment to the extent that an individual reporting unit’s performance does not meet projections. Additionally, if our current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors are not met, or if other valuation factors outside of our control change unfavorably, the estimated fair value of our reporting units could be adversely affected, leading to a potential impairment in the future.

No events occurred during the fiscal years ended 2020, 2019, or 2018 that indicated it was more likely than not that our goodwill was impaired.

Other Intangibles, net

The balances in Other Intangibles, net consisted of the following (in millions):

	As of December 31, 2020						As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets
Technology and patents	$	739	$	(527)	$	212	$	578	$	(508)	$	70
Customer and other relationships	620		(431)		189		575		(371)		204
Trade Names	44		(43)		1		43		(42)		1
Total	$	1,403	$	(1,001)	$	402	$	1,196	$	(921)	$	275

Amortization expense was $78 million, $103 million, and $97 million for fiscal years ended 2020, 2019 and 2018, respectively.

Estimated future intangible asset amortization expense is as follows (in millions):

Year Ended December 31,
2021	$	102
2022	89
2023	43
2024	43
2025	43
Thereafter	82
Total	$	402