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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
8. Goodwill and Other Intangible Assets
Goodwill
The gross carrying amounts and changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows:
 
 
Olefins Segment
 
Vinyls Segment
 
Total
Balance at December 31, 2017
 
$
30

 
$
982

 
$
1,012

Effects of changes in foreign exchange rates
 
—

 
(10
)
 
(10
)
Balance at December 31, 2018
 
30

 
972

 
1,002

Goodwill acquired during the year
 
—

 
67

 
67

Effects of changes in foreign exchange rates
 
—

 
5

 
5

Balance at December 31, 2019
 
$
30

 
$
1,044

 
$
1,074


Olefins Segment Goodwill
The Company performed its annual impairment analysis for the Olefins segment, the reporting unit assessed, during the fourth quarter of 2019. The fair value of the Olefins segment reporting unit assessed during the October 2019 impairment analysis was determined using both a discounted cash flow methodology and a market value methodology. Based upon this assessment, the Company determined that the fair value of the Olefins segment reporting unit was greater than the carrying value.
The discounted cash flow projections were based on a nine-year forecast, from 2020 to 2028, to reflect the cyclicality of the Company's Olefins business. The forecast was based on prices and spreads projected by IHS Markit ("IHS"), a chemical industry organization offering market and business advisory services for the chemical market, historical results and estimates by management, including its strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included projected sales volumes based on production capacities. The future cash flows were discounted to present value using a discount rate of 9.5%. The significant assumptions used in determining the fair values of the reporting units using the market value methodology included the determination of appropriate market comparables and the estimated multiples of EBITDA a willing buyer was likely to pay.
Vinyls Segment Goodwill
The Company performed its annual impairment analysis for the Vinyls reporting units during the second quarter of 2019. The fair values of the North America and other reporting units assessed during the April 2019 impairment analysis were determined using both a discounted cash flow methodology and a market value methodology. Based upon this assessment, the Company determined that the fair values of the Vinyls reporting units were greater than their carrying value.
The discounted cash flow projections were based on a nine-year forecast, from 2020 to 2028 to reflect the cyclicality of the housing and construction markets as the Company's Vinyls businesses are significantly influenced by those markets. The forecast was based on prices and spreads projected by IHS, historical results and estimates by management, including its strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included projected sales volumes based on production capacities. The future cash flows were discounted to present value using a discount rate ranging from 9% to 12.5%. The significant assumptions used in determining the fair values of the reporting units using the market value methodology include the determination of appropriate market comparables and the estimated multiples of EBITDA a willing buyer is likely to pay.
Intangible Assets
Intangible assets consisted of the following at December 31:
 
 
2019
 
2018
 
Weighted
Average
Life
 
 
Cost
 
Accumulated
Amortization
 
Net
 
Cost
 
Accumulated
Amortization
 
Net
 
Customer relationships
 
$
832

 
$
(309
)
 
$
523

 
$
745

 
$
(220
)
 
$
525

 
11
Other intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Licenses and intellectual property
 
172

 
(79
)
 
93

 
122

 
(65
)
 
57

 
13
Trademarks
 
120

 
(37
)
 
83

 
90

 
(26
)
 
64

 
13
Other
 
35

 
(24
)
 
11

 
35

 
(22
)
 
13

 
10
Total other intangible assets
 
$
327

 
$
(140
)
 
$
187

 
$
247

 
$
(113
)
 
$
134

 
 

Scheduled amortization of intangible assets for the next five years is as follows: $120, $117, $104, $57 and $51 in 2020, 2021, 2022, 2023 and 2024, respectively.