Goodwill and Intangible Assets

In connection with the Company’s emergence from Chapter 11 and application of fresh start accounting, the excess of reorganization value over the fair value of identified tangible and intangible assets of $178 was recorded as goodwill as of July 1, 2019. The Company’s gross carrying amount and accumulated impairments of goodwill consist of the following as of December 31, 2019 and 2018:



	Successor								Predecessor
	2019								2018
	Gross Carrying Amount		Accumulated Impairments		Accumulated Foreign Currency Translation		Net Book Value		Gross Carrying Amount		Accumulated Impairments			Accumulated Foreign Currency Translation			Net Book Value
Forest Products Resins	$	141	$	—	$	—	$	141	$	80	$	—		$	(12	)	$	68
Epoxy, Phenolic and Coating Resins	37		—		—		37		111		(70		)	—			41
Total	$	178	$	—	$	—	$	178	$	191	$	(70	)	$	(12	)	$	109

The changes in the net carrying amount of goodwill by segment for the years ended December 31, 2019 and 2018 are as follows:



	Forest Products Resins			Epoxy, Phenolic and Coating Resins			Total
Predecessor
Goodwill balance at December 31, 2017	$	71		$	42		$	113
Divestitures	(1		)	—			(1		)
Foreign currency translation	(2		)	(1		)	(3		)
Goodwill balance at December 31, 2018	68			41			109
Foreign currency translation	(1		)	—			(1		)
Goodwill balance at June 30, 2019	67			41			108
Elimination of Predecessor Goodwill	(67		)	(41		)	(108		)
Goodwill balance at July 1, 2019	$	—		$	—		$	—
Recording of Successor Goodwill⁽¹⁾	141			37			178
Successor
Goodwill balance at July 2, 2019	$	141		$	37		$	178
Adjustments⁽²⁾	—			—			—
Goodwill balance at December 31, 2019	$	141		$	37		$	178


(1)	Recording of the Successor Company goodwill in accordance with the application of fresh start accounting. Refer to Note 4 for more details.


(2)	There were no foreign currency adjustments nor impairments related to Successor Company goodwill for the period July 2, 2019 through December 31, 2019.

The Company’s intangible assets with identifiable useful lives consist of the following as of December 31, 2019 and 2018:



	Gross Carrying Amount		Accumulated Impairments			Accumulated Amortization⁽¹⁾			Net Book Value
Successor	2019
Customer relationships	$	968	$	—		$	(23	)	$	945
Trademarks	141		—			(4		)	137
Technology	110		—			(4		)	106
Total	$	1,219	$	—		$	(31	)	$	1,188

	Gross Carrying Amount		Accumulated Impairments			Accumulated Amortization⁽¹⁾			Net Book Value
Predecessor	2018
Patents and technology	$	112	$	—		$	(100	)	$	12
Customer lists and contracts	109		(22		)	(83		)	4
Other	25		—			(14		)	11
Total	$	246	$	(22	)	$	(197	)	$	27

(1) The impact of foreign currency translation on intangible assets is included in accumulated amortization in the table above.

On July 1, 2019, as part of the application of fresh start accounting, the Company’s existing intangible assets were eliminated and new intangible assets were established at their estimated fair value as of July 1, 2019. New intangible assets were established for customer relationships, trademarks, and technology. See Note 4 for more information.

In 2018, as a result of the indefinite idling of an oilfield manufacturing facility with the Epoxy, Phenolic and Coating Resins segment, the remaining U.S. oilfield asset group was evaluated for impairment utilizing a discounted cash flow approach, resulting in an additional impairment of $5 that was recorded during the first quarter of 2018 related to an existing customer relationship intangible asset, which is included in “Asset impairments” in the Consolidated Statements of Operations for the year ended December 31, 2018.

Total intangible amortization expense for the periods July 2, 2019 through December 31, 2019, January 1, 2019 through July 1, 2019 and the years ended December 31, 2018 and 2017 was $28, $3, $10 and $12, respectively.

Estimated annual intangible amortization expense for 2020 through 2024 is as follows:



2020	$	60
2021	60
2022	60
2023	60
2024	60