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

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Long-Lived Asset Impairments and Other

Long-lived Asset Impairments

We did not recognize any long-lived asset impairments in the third quarter ended September 30, 2020.

The unprecedented global economic and industry conditions resulting from the decline in demand and impact from the COVID-19 pandemic were identified as impairment indicators. As a result, we performed interim impairment assessments as of March 31, 2020, and as of June 30, 2020, 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 and recognized $818 million of long-lived asset impairments in “Long-lived Asset Impairments” on the accompanying Condensed Consolidated Statements of Operations during the nine months ended September 30, 2020.

The fair values of our long-lived assets were determined using discounted cash flow or Level 3 fair value analyses. The unobservable inputs to the income approach included the estimated discounted future cash flows by asset group, specifically the forecasted revenue, forecasted operating margins, and discount rate assumptions used to determine the fair value of certain asset groups.

The table below details the Successor long-lived asset impairments by asset and segment recognized for the nine months ended September 30, 2020.

	Nine Months Ended September 30, 2020
(Dollars in millions)	Western Hemisphere		Eastern Hemisphere		Total
Property, Plant and Equipment	$	316	$	255	$	571
Intangible Assets	44		115		159
Right of Use Assets	56		32		88
Total Impairment Charges	$	416	$	402	$	818

We recognized no Predecessor long-lived asset impairments in the third quarter of 2019 and $20 million of Predecessor long-lived asset impairments for the nine months ended September 30, 2019. The impairments in 2019 were related to our Western Hemisphere segment totaling $13 million and Eastern Hemisphere totaling $7 million.