GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

Goodwill

At June 30, 2020 and December 31, 2019, we had goodwill balances recorded at ITCTransmission, METC and ITC Midwest of $173 million, $454 million and $323 million, respectively, which resulted from the ITCTransmission and METC acquisitions and ITC Midwest’s acquisition of the IP&L transmission assets, respectively.

Intangible Assets

We have recorded intangible assets as a result of the METC acquisition in 2006. The carrying value of these assets was $17 million and $19 million (net of accumulated amortization of $42 million and $40 million) as of June 30, 2020 and December 31, 2019, respectively.

We have also recorded intangible assets for payments made by and obligations of ITC Great Plains to certain TOs to acquire rights, which are required under the SPP tariff to designate ITC Great Plains to build, own and operate projects within the SPP region, including regional cost sharing projects in Kansas. The carrying amount of these intangible assets was $14 million (net of accumulated amortization of $2 million) at both June 30, 2020 and December 31, 2019.

We recognized $1 million and less than $1 million of amortization expense of our intangible assets during each of the three months ended June 30, 2020 and 2019, respectively, and recognized $2 million and $1 million of amortization expense of our intangible assets during the six months ended June 30, 2020 and 2019, respectively. For the balance of intangible assets recorded as of June 30, 2020, we expect the annual amortization of these assets to be $3 million per year for each of the next five years.