Goodwill and Other Intangible Assets, net

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill and Other Intangible Assets, net:

The movements in goodwill were as follows:

(in millions)	European Union			Eastern Europe		Middle East & Africa		South & Southeast Asia		East Asia & Australia		Latin America & Canada			Total
Balances, December 31, 2018	$	1,357		$	303	$	87	$	2,795	$	536	$	2,111		$	7,189
Changes due to:
Currency	(2		)	—		2		57		9		36			102
Deconsolidation of RBH												(1,463		)	(1,463		)
Balances, June 30, 2019	$	1,355		$	303	$	89	$	2,852	$	545	$	684		$	5,828

At June 30, 2019, goodwill primarily reflects PMI’s acquisitions in Colombia, Greece, Indonesia, Mexico, Pakistan and Serbia, as well as the business combination in the Philippines.

For details on the deconsolidation of RBH, see Note 20. Deconsolidation of RBH.

Details of other intangible assets were as follows:

		June 30, 2019						December 31, 2018
(in millions)	Weighted-Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Non-amortizable intangible assets		$	1,301			$	1,301	$	1,269			$	1,269
Amortizable intangible assets:
Trademarks	18 years	1,221		$	502	719		1,488		$	608	880
Distribution networks	8 years	112		68		44		141		82		59
Other*	10 years	107		41		66		107		37		70
Total other intangible assets		$	2,741	$	611	$	2,130	$	3,005	$	727	$	2,278

* Includes farmer contracts and intellectual property rights

Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico. The increase since December 31, 2018 was due to currency movements of $32 million.

The decrease in the gross carrying amount of amortizable intangible assets from December 31, 2018 was mainly due to the deconsolidation of RBH's trademarks of ($275 million) and distribution network of ($29 million), partially offset by currency movements of $10 million.

The change in the accumulated amortization from December 31, 2018 was mainly due to the deconsolidation of RBH's trademarks of ($133 million) and distribution network of ($18 million), partially offset by the 2019 amortization of $35 million.

Amortization expense for each of the next five years is estimated to be $67 million or less, assuming no additional transactions occur that require the amortization of intangible assets.

During the second quarter of 2019, PMI completed its annual review of goodwill and non-amortizable intangible assets for potential impairment, and no impairment charges were required as a result of this review.