XML 116 R20.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
GOODWILL
 12 Months Ended
Dec. 31, 2019
Intangible Assets [Abstract]  
GOODWILL
GOODWILL
(US$ MILLIONS)
 
2019
 
2018
Balance at beginning of year
 
$
2,411

 
$
1,554

Acquisitions through business combinations (1)
 
3,444

 
957

Impairment losses
 
(418
)
 
—

Dispositions
 
(21
)
 
—

Assets reclassified as held for sale (2)
 
(212
)
 
—

Foreign currency translation
 
14

 
(100
)
Balance at end of year
 
$
5,218

 
$
2,411

____________________________________
(1) 
See Note 3 for additional information.
(2) 
Includes assets that were reclassified as held for sale and subsequently disposed. See Note 8 and Note 9 for additional information.

During the year ended December 31, 2019, the partnership recorded a goodwill impairment loss of $261 million within our infrastructure services segment. This was related to the partnership’s investment in Teekay Offshore as a result of changes in certain vessel redeployment opportunities and the reassessment of future assumptions. This reduced the carrying value of Teekay Offshore goodwill from $547 million to $286 million. The recoverable amount was based on the fair value less costs of disposal, using a discounted cash flow model incorporating significant unobservable inputs. The estimates regarding expected future cash flows and discount rates are level 3 fair value inputs based on various assumptions including existing contracts, future vessel redeployment rates, financial forecasts and industry trends. The partnership also recorded a goodwill impairment loss of $157 million within our business services segment.
Goodwill is allocated to the following segments as at December 31, 2019 and 2018:
(US$ MILLIONS)
 
2019
 
2018
Business services
 
2,514

 
1,306

Infrastructure services
 
470

 
760

Industrials
 
2,234

 
345

Total
 
$
5,218

 
$
2,411