Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill



	Advanced Engineered Materials		Consumer Specialties		Industrial Specialties		Acetyl Intermediates		Total
	(In $ millions)
As of December 31, 2015	282		230		39		154		705
Acquisitions (Note 4)	106		—		—		—		106
Exchange rate changes	(3	)	(5	)	(1	)	(6	)	(15	)
As of December 31, 2016	385		225		38		148		796
Acquisitions (Note 4)	128		—		—		—		128
Exchange rate changes	42		12		2		23		79
As of December 31, 2017⁽¹⁾	555		237		40		171		1,003

______________________________


⁽¹⁾	There were $0 million of accumulated impairment losses as of December 31, 2017.

In connection with the Company's annual goodwill impairment assessment, the Company did not record an impairment loss to goodwill during the nine months ended September 30, 2017 as the estimated fair value for each of the Company's reporting units exceeded the carrying amount of the underlying assets by a substantial margin (Note 2). No events or changes in circumstances occurred during the three months ended December 31, 2017 that would indicate that the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period.

Intangible Assets, Net

Finite-lived intangible assets are as follows:



	Licenses		Customer- Related Intangible Assets		Developed Technology		Covenants Not to Compete and Other		Total
	(In $ millions)
Gross Asset Value
As of December 31, 2015	38		456		35		50		579
Acquisitions (Note 4)	—		64		—		3		67		⁽¹⁾
Exchange rate changes	(2	)	(11	)	—		—		(13	)
As of December 31, 2016	36		509		35		53		633
Acquisitions (Note 4)	—		73		9		—		82		⁽²⁾
Exchange rate changes	2		58		1		1		62
As of December 31, 2017	38		640		45		54		777
Accumulated Amortization
As of December 31, 2015	(25	)	(449	)	(25	)	(29	)	(528	)
Amortization	(3	)	(2	)	(2	)	(2	)	(9	)
Exchange rate changes	1		11		1		—		13
As of December 31, 2016	(27	)	(440	)	(26	)	(31	)	(524	)
Amortization	(4	)	(11	)	(3	)	(2	)	(20	)
Exchange rate changes	(2	)	(45	)	(1	)	1		(47	)
As of December 31, 2017	(33	)	(496	)	(30	)	(32	)	(591	)
Net book value	5		144		15		22		186

______________________________


⁽¹⁾	Primarily related to intangible assets acquired from SOFTER (Note 4) during the year ended December 31, 2016, with a weighted average amortization period of 12 years.


⁽²⁾	Primarily related to intangible assets acquired from Nilit (Note 4) during the year ended December 31, 2017, with a weighted average amortization period of 14 years.

Indefinite-lived intangible assets are as follows:



	Trademarks and Trade Names
	(In $ millions)
As of December 31, 2015	74
Acquisitions (Note 4)	12
Exchange rate changes	(1	)
As of December 31, 2016	85
Acquisitions (Note 4)	22
Exchange rate changes	8
As of December 31, 2017	115

In connection with the Company's annual indefinite-lived intangible assets impairment assessment, the Company did not record an impairment loss to indefinite-lived intangible assets during the nine months ended September 30, 2017 as the estimated fair value for each of the Company's indefinite-lived intangible assets exceeded the carrying amount of the underlying asset by a substantial margin (Note 2). No events or changes in circumstances occurred during the three months ended December 31, 2017 that would indicate that the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period.

The Company's trademarks and trade names have an indefinite life. For the year ended December 31, 2017, the Company did not renew or extend any intangible assets.

Estimated amortization expense for the succeeding five fiscal years is as follows:



	(In $ millions)
2018	19
2019	17
2020	15
2021	15
2022	14

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details