Goodwill and Intangible Assets, net

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill and Intangible Assets, Net

Goodwill


	Engineered Materials	Acetate Tow	Acetyl Chain		Total
	(In $ millions)
As of December 31, 2019	727	148	199		1,074
Acquisitions	—	—	26	(1)	26
Exchange rate changes	18	—	10		28
As of September 30, 2020	745	148	235		1,128

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⁽¹⁾Represents goodwill related to the acquisition of Nouryon's redispersible polymer powders business offered under the Elotex^® brand ("Elotex").

The Company assesses the recoverability of the carrying amount of its reporting unit goodwill either qualitatively or quantitatively annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. 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, 2020 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.

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, 2019	42	667		44	56	809
Acquisitions	—	16	(1)	—	—	16

Exchange rate changes	—	18		1	—	19
As of September 30, 2020	42	701		45	56	844
Accumulated Amortization
As of December 31, 2019	(35)	(504)		(35)	(38)	(612)
Amortization	(1)	(12)		(2)	(2)	(17)
Exchange rate changes	(1)	(16)		(1)	1	(17)
As of September 30, 2020	(37)	(532)		(38)	(39)	(646)
Net book value	5	169		7	17	198

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⁽¹⁾Related to acquired Elotex finite-lived intangible assets, 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, 2019	115
Acquisitions	2	(1)
Accumulated impairment losses	(1)
Exchange rate changes	3
As of September 30, 2020	119

______________________________

⁽¹⁾Related to acquired Elotex indefinite-lived intangible assets.

The Company assesses the recoverability of the carrying amount of its indefinite-lived intangible assets either qualitatively or by utilizing the relief from royalty method under the income approach annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. In connection with the Company's annual indefinite-lived intangible assets impairment assessment, the Company recorded an impairment loss of $1 million in Other charges (gains), net (Note 1 2) to write-off the total net book value of a trade name included in the Engineered Materials segment. Other than this trade name, the estimated fair value for each of the Company's other indefinite-lived intangible assets exceeded the carrying value of the underlying asset by a substantial margin.

During the nine months ended September 30, 2020, the Company did not renew or extend any intangible assets.

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


			(In $ millions)
2021			22
2022			21
2023			19
2024			18
2025			18