Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

HII performs impairment tests for goodwill as of November 30 of each year and between annual impairment tests if an event occurs or circumstances change that would more likely than not reduce the fair values of the Company's reporting units below their carrying values.

Accumulated goodwill impairment losses as of each of June 30, 2020, and December 31, 2019, were $2,906 million. The accumulated goodwill impairment losses for Ingalls as of each of June 30, 2020, and December 31, 2019, were $1,568 million. The accumulated goodwill impairment losses for Newport News as of each of June 30, 2020, and December 31, 2019, were $1,187 million. The accumulated goodwill impairment losses for Technical Solutions as of each of June 30, 2020, and December 31, 2019, were $151 million.

For the six months ended June 30, 2020, the carrying amounts of goodwill changed as follows:


($ in millions)	Ingalls		Newport News		Technical Solutions		Total
Balance as of December 31, 2019	$	175	$	721	$	477	$	1,373

Acquisitions	—		—		310		310
Adjustments	—		—		(107)		(107)
Balance as of June 30, 2020	$	175	$	721	$	680	$	1,576

As of June 30, 2020, the Company recorded goodwill adjustments of $72 million relating to the acquisition of Hydroid, primarily related to allocations to intangible assets. As of June 30, 2020, the Company allocated $35 million of goodwill at its Technical Solutions segment to an asset group that was classified as held for sale.

Other Intangible Assets

The Company's purchased intangible assets are amortized on a straight-line basis or a method based on the pattern of benefits over their estimated useful lives. Net intangible assets consist primarily of nuclear-powered aircraft carrier and submarine program intangible assets, with an aggregate weighted-average useful life of 40 years based on the long life cycle of the related programs. Aggregate amortization expense was $15 million and $12 million for the three months ended June 30, 2020 and 2019, respectively. Aggregate amortization expense was $26 million and $23 million for the six months ended June 30, 2020 and 2019, respectively.

In connection with the Hydroid purchase in 2020, the Company recorded $76 million of intangible assets pertaining to existing contract backlog,customer relationships, and technology, to be amortized using the pattern of benefits method over a weighted-average life of nine years.

In connection with the Fulcrum purchase in 2019, the Company recorded $49 million of intangible assets pertaining to existing contract backlog and customer relationships, to be amortized using the pattern of benefits method over a weighted-average life of seven years.

The Company expects amortization expense for purchased intangible assets of approximately $55 million in 2020, $51 million in 2021, $45 million in 2022, $35 million in 2023, and $25 million in 2024.