The Company performs an annual quantitative goodwill and indefinite-lived asset impairment analysis during the fourth quarter, which requires it to estimate the fair value of its reporting units with goodwill. Refer to Note 8, “Financial Instruments and Fair Value”, for additional information on the fair value measurements used in the annual goodwill and indefinite-lived impairment analysis.

As discussed in Note 18, “Segment and Geographic Area Information”, during the first quarter of 2021, the Company moved a reporting unit within the Powertrain segment to the Ride Performance segment and Ride Performance was renamed Performance Solutions.

At December 31, 2021 and 2020, goodwill consisted of the following:


	December 31, 2021
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Gross carrying amount at beginning of period	$	623	$	549	$	23	$	59	$	1,254



Foreign exchange	—		(3)		(1)		—		(4)
Gross carrying amount at end of period	623		546		22		59		1,250

Accumulated impairment loss at beginning of period	(310)		(377)		—		(59)		(746)

Foreign exchange	—		3		—		—		3
Accumulated impairment loss at end of period	(310)		(374)		—		(59)		(743)

Net carrying value at end of period	$	313	$	172	$	22	$	—	$	507


	December 31, 2020
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Gross carrying amount at beginning of period	$	620	$	543	$	22	$	59	$	1,244


Reclassification from assets held for sale	2		—		—		—		2
Foreign exchange	1		6		1		—		8
Gross carrying amount at end of period	623		549		23		59		1,254

Accumulated impairment loss at beginning of period	(239)		(212)		—		(18)		(469)
Impairment	(70)		(156)		—		(41)		(267)
Foreign exchange	(1)		(9)		—		—		(10)
Accumulated impairment loss at end of period	(310)		(377)		—		(59)		(746)

Net carrying value at end of period	$	313	$	172	$	23	$	—	$	508


		December 31, 2021						December 31, 2020
	Useful Lives (in Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Definite-lived intangible assets:
Customer relationships and platforms	10	$	993	$	(374)	$	619	$	995	$	(282)	$	713
Customer contract	10	8		(7)		1		8		(6)		2
Patents	10 to 17	1		(1)		—		1		(1)		—
Technology rights	10 to 30	135		(62)		73		139		(51)		88
Packaged kits know-how	10	54		(18)		36		54		(12)		42
Catalogs	10	47		(15)		32		47		(11)		36
Licensing agreements	3 to 5	64		(47)		17		66		(35)		31
Land use rights	28 to 46	51		(6)		45		49		(4)		45
		$	1,353	$	(530)	823		$	1,359	$	(402)	957
Indefinite-lived intangible assets:
Trade names and trademarks						233						237
Total						$	1,056					$	1,194

The amortization expense associated with definite-lived intangible assets for the years ended December 31, 2021, 2020, and 2019 was $128 million, $130 million, and $138 million and is included in “Depreciation and amortization” within the consolidated statements of income (loss).

For the annual impairment test performed in the fourth quarter of 2021, the estimated fair value of all reporting units with goodwill exceeded their carrying values and the estimated fair value of all indefinite-lived intangible assets exceeded their carrying values. As such, no impairment expense was recognized for the year ended December 31, 2021.

At December 31, 2021, goodwill for reporting units within the Motorparts segment, Performance Solutions segment and two reporting units in the Clear Air segment where fair value exceeds carrying value greater than 25% was $496 million, and goodwill for a reporting unit within the Clean Air segment where the fair value exceeds carrying value by less than 25% was $11 million.


	Year Ended December 31, 2020
	Motorparts		Performance Solutions		Powertrain		Total
Goodwill impairment charges	$	70	$	156	$	41	$	267
Trade names and trademarks intangible asset impairment charges	40		11		—		51
Definite-lived intangible asset impairment charges	—		65		—		65
	$	110	$	232	$	41	$	383

During the first quarter of 2020, the Company concluded it was more likely than not that the fair values of certain of its reporting units and its indefinite-lived intangible assets had declined below their carrying values as a result of the effects of the COVID-19 global pandemic on the Company’s projected financial information. The Company completed a goodwill impairment analysis for four of its reporting units with goodwill in the Motorparts, Performance Solutions, and Powertrain segments. The difference between the reporting units’ carrying values and fair values were recognized as impairment charges. The Company recognized $267 million in non-cash impairment charges related to its goodwill during the year ended December 31, 2020, which represented full impairments of the goodwill in one reporting unit in the Performance Solutions segment and one reporting unit in the Powertrain segment, and partial impairments of goodwill in one reporting unit in the Motorparts segment and one reporting unit in the Performance Solutions segment.

During the first quarter of 2020, the Company also completed an analysis to determine the fair value of its trade names and trademarks for its reporting units in the Motorparts and Performance Solutions segments. It was determined that their carrying values exceeded their fair values and the Company recognized $51 million in non-cash impairment charges related to these indefinite-lived intangible assets during the year ended December 31, 2020, which represented a full impairment of certain trade names and trademarks in the Motorparts segment, and a partial impairment of certain trade names and trademarks in the Motorparts and Performance Solutions segments.

As discussed in more details in Note 3, “Restructuring Charges, Net and Asset Impairments”, the Company concluded impairment triggers had occurred during the first quarter of 2020 for certain long-lived asset groups within the Performance Solutions segment. As a result, the Company recorded non-cash impairment charges of $65 million related to its definite-lived intangible assets during the year ended December 31, 2020, which represented full impairments of the definite-lived intangible assets in two reporting units.

For the annual impairment test performed in the fourth quarter of 2020, the estimated fair value of all reporting units with goodwill exceeded their carrying values and the estimated fair value of all indefinite-lived intangible assets exceeded their carrying values. As such, no additional impairment expense was recognized in the fourth quarter of 2020.


	Year Ended December 31, 2019
	Motorparts		Performance Solutions		Powertrain		Total
Goodwill impairment charges	$	21	$	69	$	18	$	108
Trade names and trademarks intangible asset impairment charges	133		—		—		133

	$	154	$	69	$	18	$	241

•During the first quarter of 2019, the Company reorganized the reporting structure of its Aftermarket, Performance Solutions, and Motorparts segments and the underlying reporting units within those segments. The Company reassigned assets and liabilities (excluding goodwill) to the reporting units affected. Goodwill was then reassigned to the reporting units using a relative fair value approach based on the fair value of the elements transferred and the fair value of the elements remaining within the original reporting units. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Performance Solutions segment, one of which was a full impairment of the goodwill. As a result, this non-cash charge was recorded in the first quarter of 2019. Goodwill allocated to other reporting units was supported by the valuation performed at that time;

•During the third quarter of 2019, the Company finalized purchase accounting for the Federal-Mogul LLC acquisition. As a result, the final goodwill allocation was reassigned to the reorganized segments and reporting unit structure that occurred in the first quarter of 2019 using a relative fair value approach and the Company determined an incremental $9 million of goodwill was impaired for one reporting unit in its Performance Solutions segment, which continued to represent a full impairment of goodwill in that reporting unit. This non-cash charge was recorded in the third quarter of 2019; and

•As a result of the annual goodwill impairment analysis performed in the fourth quarter of 2019, the estimated fair value of one of the reporting units in the Motorparts segment was lower than its carrying value and an impairment charge of $21 million was recognized, which was a full impairment of the goodwill in that reporting unit. Additionally, the estimated fair value of one of the reporting units in the Powertrain segment was determined to be lower than the carrying value, and a partial goodwill impairment charge of $18 million was recognized. At December 31, 2019, this reporting unit has $40 million of goodwill after recognizing the impairment. This non-cash charge was recorded in the fourth quarter of 2019.

As a result of the annual indefinite-lived intangible asset analysis performed in the fourth quarter of 2019, the estimated fair value of certain trade names and trademarks within the Motorparts segment were less than their carrying values. Accordingly, non-cash impairment charges of $133 million were recognized during the year ended December 31, 2019, both of which were partial impairments.