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Intangible Assets and Goodwill
 9 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
Intangible assets at September 30, 2019 and December 31, 2018 consisted of the following ($ in millions):
 
September 30
2019
 
December 31, 2018
Contractual arrangements
$
921

 
$
921

Non-compete agreements
14

 
14

Customer relationships
353

 
353

Trade names
16

 
16

Technology
9

 
9

 
1,313

 
1,313

Less: accumulated amortization
(568
)
 
(524
)
Intangible assets, net
$
745

 
$
789



The goodwill balance as of September 30, 2019 is comprised of the following ($ in millions):
Goodwill acquired in business combinations, net of disposals
$
2,172

Accumulated impairment charges(1)
(126
)
Other
(3
)
Balance at September 30, 2019
$
2,043


_______
(1) Accumulated impairment charges primarily relate to goodwill impairment charges at Atlantic Aviation recorded during the
year ended December 31, 2009 and 2008.
The Company tests for goodwill impairment at the reporting unit level on an annual basis on October 1st of each year and between annual tests if a triggering event indicates the possibility of an impairment. The Company monitors changing business conditions as well as industry and economic factors, among others, for events which could trigger the need for an interim impairment analysis. The Company has experienced a sustained decline in its market capitalization over the 18-months ended September 30, 2019. The decline reflects, in part, the sales of smaller and non-core businesses during that period. However, the Company concluded that the decline in its market capitalization also reflected a reduced contribution from its IMTT segment as a result of lower bulk liquid storage utilization levels and lease rates and determined that these constituted a triggering event.
The Company performed an interim impairment analysis based on financial results through September 30, 2019. For IMTT, the Company used both the market and income approaches and weighting them based on their applicability to the segment. The income approach used forecasted cash flows developed as part of the Company’s annual update of its 5-year business plan. For
Atlantic Aviation and Hawaii Gas, the Company used only the market approach given that the fair value of these businesses substantially exceeded the book value noted in 2018. The analysis concluded that fair value of each of the Company’s reporting units exceeded their carrying value and no impairment was recorded.
At September 30, 2019, the fair value of the Company’s reporting units exceeded their aggregate book value by $2.2 billion, or 33%. Approximately $1.9 billion of the excess was attributed to Atlantic Aviation, approximately $280 million to Hawaii Gas and approximately $20 million to IMTT.
Unfavorable fluctuations in the discount rate or declines in forecasted storage revenues and margins could result in an impairment of IMTT in the future. For example, a 0.25% increase to the discount rate would decrease the value of IMTT by approximately $70 million. Any increase in the discount rate, in conjunction with any decrease in the projected cash flows for IMTT, would negatively affect the current valuations. Due to the inherent uncertainties in the estimates and assumptions used in the fair value analysis, the Company’s actual results may differ. These differences could alter the fair value of the Company’s reporting units and may result in impairment charges in future periods. The Company will continue to evaluate the fair value of goodwill through the fourth quarter of fiscal year 2019 for any potential impairment.