Goodwill and Intangible Assets, net

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill and Intangible Assets, Net

Goodwill



	Engineered Materials		Acetate Tow	Industrial Specialties	Acetyl Intermediates		Total
	(In $ millions)
As of December 31, 2017	643		149	40	171		1,003
Acquisitions (Note 3)	84		—	—	—		84
Exchange rate changes	(13	)	—	—	(5	)	(18	)
As of June 30, 2018⁽¹⁾	714		149	40	166		1,069

______________________________


⁽¹⁾	There were $0 million of accumulated impairment losses as of June 30, 2018.

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, 2017	38			640		45		54		777
Acquisitions (Note 3)	—			32		—		3		35		⁽¹⁾
Renewals	6		⁽²⁾	—		—		—		6
Exchange rate changes	(1	)		(13	)	—		—		(14	)
As of June 30, 2018	43			659		45		57		804
Accumulated Amortization
As of December 31, 2017	(33	)		(496	)	(30	)	(32	)	(591	)
Amortization	(1	)		(8	)	(2	)	(2	)	(13	)
Exchange rate changes	1			12		(1	)	—		12
As of June 30, 2018	(33	)		(492	)	(33	)	(34	)	(592	)
Net book value	10			167		12		23		212

______________________________


⁽¹⁾	Represents intangible assets acquired related to Omni Plastics (Note 3) with a weighted average amortization period of 11 years.


⁽²⁾	During the three months ended June 30, 2018, the Company extended an exclusive acetyls research and development technology agreement license, which will be amortized over a period of 5 years.

Indefinite-lived intangible assets are as follows:



	Trademarks and Trade Names
	(In $ millions)
As of December 31, 2017	115
Acquisitions (Note 3)	—
Accumulated impairment losses	—
Exchange rate changes	(2	)
As of June 30, 2018	113

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



	(In $ millions)
2019	22
2020	20
2021	19
2022	17
2023	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