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

3 Months Ended

Mar. 31, 2021

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 three months ended March 31, 2021.

During the three months ended March 31, 2020, the 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, 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 $640 million of long-lived asset impairments in “Long-lived Asset Impairments” on the accompanying Condensed Consolidated Statements of Operations during the three months ended March 31, 2020. See the impairment to goodwill and intangible assets at “Note 5 – Goodwill and Intangible Assets.”

The fair values of our long-lived assets were determined using discounted cash flow under the income approach or Level 3 fair value analyses. The income approach required significant assumptions to determine the fair value of an asset or asset group including the estimated discounted future cash flows, specifically the forecasted revenue, forecasted operating margins and the discount rate.

The table below details the long-lived asset impairments by asset and segment recognized.

	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
Total Impairment Charges	$	302	$	338	$	640