Long-Lived Asset Impairments and Other Long-Lived Asset Impairments and Other

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Long-Lived Asset Impairments and Other

Long-lived Assets Impairment and Other

As a result of the unprecedented industry conditions described in “Note 1 – General” which we identified as impairment indicators, we completed impairment assessments of our property, plant and equipment, definite-lived intangible assets, goodwill and right of use assets with the assistance of third-party valuation advisors. Based on our impairment test, we determined the carrying amount of certain long-lived assets exceeded their respective fair values. Therefore, during the three months ended March 31, 2020, we recorded total long-lived asset impairments of $640 million and $167 million of goodwill impairments. The fair value of our long-lived assets were based on discounted cash flow analysis or Level 3 fair values analysis. The unobservable inputs to the income approach included the assets’ estimated future cash flows, estimates of discount rates commensurate with the assets’ risks, revenue growth rates, profitability margins, and the remaining useful life of the primary asset.

The table below details the Successor impairment charges by asset and segment:

	Three Months Ended March 31, 2020
(Dollars in millions)	Western Hemisphere		Eastern Hemisphere		Total
Property, Plant and Equipment	$	222	$	208	$	430
Intangible Assets	31		106		137
Right of Use Assets	49		24		73
Goodwill	—		167		167
Total Impairment Charges	$	302	$	505	$	807

See Note 7 – Goodwill and Intangible Assets and Note 9 – Leases for further information. We had $229 million of goodwill impairment and had no long-lived asset impairments in the Predecessor Period for the three months ended March 31, 2019.