Goodwill (Notes)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The gross carrying amounts and changes in the carrying amount of goodwill for the nine months ended September 30, 2020 were as follows:



	Vinyls Segment		Olefins Segment		Total
Balances at December 31, 2019	$	1,044	$	30	$	1,074
Effects of changes in foreign exchange rates	1		—		1
Balances at September 30, 2020	$	1,045	$	30	$	1,075

The Company performed its annual impairment assessment for the Vinyls reporting units during the second quarter of 2020 and did not identify any impairment. The fair value of the Vinyls reporting units was calculated using both a discounted cash flow methodology and a market value methodology. The discounted cash flow projections were based on a long-term forecast. The forecast was based on prices and spreads projected by third party industry publications, historical results and estimates by management, including its strategic and operational plans. 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. Significant assumptions used in determining the fair value of the reporting unit using the market value methodology included the determination of market comparables and the estimated multiples of net income before interest expense, income taxes, depreciation and amortization ("EBITDA") a willing buyer is likely to pay.

The Company will perform its annual impairment assessment for the Olefins reporting unit in the fourth quarter or when events or circumstances indicate a reporting unit's carrying value may not be recoverable.

There were no events or circumstances indicating that the fair value of either of the Vinyls or Olefins reporting units had been reduced below its carrying value during the third quarter of 2020.