Goodwill and Other Intangible Assets, net

3 Months Ended

Mar. 31, 2020

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, 2019	$	1,338		$	300		$	89		$	2,898		$	551		$	682		$	5,858
Changes due to:
Currency	(53		)	(13		)	(19		)	(327		)	(47		)	(115		)	(574		)
Balances, March 31, 2020	$	1,285		$	287		$	70		$	2,571		$	504		$	567		$	5,284

At March 31, 2020, goodwill primarily reflects PMI’s acquisitions in Colombia, Greece, Indonesia, Mexico, Pakistan and Serbia, as well as the business combination in the Philippines.

Details of other intangible assets were as follows:

		March 31, 2020						December 31, 2019
(in millions)	Weighted-Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Non-amortizable intangible assets		$	1,112			$	1,112	$	1,319			$	1,319
Amortizable intangible assets:
Trademarks	14 years	1,160		$	518	642		1,217		$	526	691
Distribution networks	8 years	103		67		36		113		72		41
Other*	9 years	104		44		60		106		44		62
Total other intangible assets		$	2,479	$	629	$	1,850	$	2,755	$	642	$	2,113

* Primarily intellectual property rights

Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico. The decrease since December 31, 2019 was due to currency movements of ($207 million).

The decrease in the gross carrying amount of amortizable intangible assets from December 31, 2019, was mainly due to currency movements of ($69 million).

The change in the accumulated amortization from December 31, 2019, was mainly due to currency movements of ($31 million), partially offset by the 2020 amortization of $18 million.

Amortization expense for each of the next five years is estimated to be $75 million or less, assuming no additional transactions occur that require the amortization of intangible assets.