Goodwill and Other Intangible Assets, net

9 Months Ended

Sep. 30, 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	18		3		(15)		(116)		(13)		(88)		(211)
Balances, September 30, 2020	$	1,356	$	303	$	74	$	2,782	$	538	$	594	$	5,647

At September 30, 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:

		September 30, 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		$	1,199			$	1,199	$	1,319			$	1,319
Amortizable intangible assets:
Trademarks	13 years	1,197		$	562	635		1,217		$	526	691
Distribution networks	8 years	109		73		36		113		72		41
Other*	8 years	104		48		56		106		44		62
Total other intangible assets		$	2,609	$	683	$	1,926	$	2,755	$	642	$	2,113

* Primarily includes 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 ($120 million).

The decrease in the gross carrying amount of amortizable intangible assets from December 31, 2019, was mainly due to currency movements of ($27 million).

The change in the accumulated amortization from December 31, 2019, was mainly due to the 2020 amortization of $55 million, partially offset by currency movements of ($14 million).

Amortization expense for each of the next five years is estimated to be $73 million or less, assuming no additional transactions occur that require the amortization of intangible assets.

During the second quarter of 2020, 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.