Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill and Intangible Assets, Net

Goodwill

	Engineered Materials		Acetate Tow	Acetyl Chain		Total
	(In $ millions)
As of December 31, 2018	707		148	202		1,057
Acquisitions	29	(1)	—	—		29
Exchange rate changes	(9)		—	(3)		(12)
As of December 31, 2019	727		148	199		1,074
Acquisitions	—		—	30	(2)	30
Exchange rate changes	41		1	20		62
As of December 31, 2020(3)	768		149	249		1,166

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(1)Represents goodwill related to the acquisition of Next Polymers Ltd. ("Next Polymers").

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

(3)There were no accumulated impairment losses as of December 31, 2020.

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 (Note 2). No events or changes in circumstances occurred during the three months ended December 31, 2020 that indicated 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, 2018	42	651	44	56	793
Acquisitions	—	25	—	—	25	(1)
Exchange rate changes	—	(9)	—	—	(9)
As of December 31, 2019	42	667	44	56	809
Acquisitions	—	16	—	—	16	(2)
Exchange rate changes	2	41	1	—	44
As of December 31, 2020	44	724	45	56	869
Accumulated Amortization
As of December 31, 2018	(33)	(495)	(32)	(35)	(595)
Amortization	(2)	(16)	(3)	(3)	(24)
Exchange rate changes	—	7	—	—	7
As of December 31, 2019	(35)	(504)	(35)	(38)	(612)
Amortization	(1)	(17)	(3)	(1)	(22)
Exchange rate changes	(2)	(34)	(2)	—	(38)
As of December 31, 2020	(38)	(555)	(40)	(39)	(672)
Net book value	6	169	5	17	197

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(1)Related to intangible assets acquired from Next Polymers with a weighted average amortization period of 13 years.

(2)Related to intangible assets acquired from Elotex 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, 2018	112
Acquisitions	4	(1)
Exchange rate changes	(1)
As of December 31, 2019	115
Acquisitions	2	(2)
Impairment loss (Note 2)	(1)
Exchange rate changes	6
As of December 31, 2020	122

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(1)Related to indefinite-lived intangible assets acquired from Next Polymers.

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

In connection with the Company's annual indefinite-lived intangible assets impairment assessment (Note 2), the Company recorded an impairment loss of $1 million in Other charges (gains), net (Note 16) 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. No events or changes in circumstances occurred during the three months ended December 31, 2020 that indicated the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period.

During the year ended December 31, 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	23
2022	22
2023	19
2024	18
2025	18