Goodwill and Other Intangible Assets, Net

Goodwill

During the first quarter of 2019, in connection with the Separation and the Acquisition, we made significant changes to our organizational and reporting structure. With these changes, we revised our reportable segments. Goodwill was reallocated to the new reporting segments. See Note 14 - Segment Data.

In August 2019, we released our results for the three and six months ended June 30, 2019, which failed to meet expectations, and included a downward revision to our previously provided full year guidance for the year ended December 31, 2019. We experienced a sustained decline in our share price and a resulting decrease in our market capitalization. These events triggered an interim impairment review as of August 31, 2019. We tested for goodwill impairment by quantitatively comparing the fair values of our reporting units to their carrying amounts. See Note 6 - Fair Value.

Based on our analysis, we determined that the carrying value of our reporting units exceeded their fair values so we recorded a non-tax-deductible goodwill impairment charge totaling $939 million, which was included within the consolidated statement of operations for the three and nine months ended September 30, 2019.

The change in the Goodwill balances by segment for the nine months ended September 30, 2019 and for the year ended December 29, 2018 were as follows:



(In millions)	North America			Europe			APAC & Emerging Markets			Total
Balance at December 30, 2017^(a)	$	528		$	182		$	50		$	760
Foreign currency translation	(1		)	(11		)	(1		)	(13		)
Goodwill additions	2			1			—			3
Balance at December 29, 2018^(a)	529			172			49			750
Foreign currency translation	—			(8		)	(1		)	(9		)
Goodwill additions^(b)	1,284			54			16			1,354
Goodwill impairment	(657		)	(218		)	(64		)	(939		)
Balance at September 30, 2019	$	1,156		$	—		$	—		$	1,156

Accumulated impairment at September 30, 2019	$	(657	)	$	(218	)	$	(64	)	$	(939	)

(a) Recast to conform to 2019 presentation (b) Includes goodwill adjustment of $30 million related to Vets First Choice - see Note 3 - Business Acquisitions

There were no accumulated impairment charges at December 29, 2018.

Other Intangible Assets, Net

We periodically review our long-lived assets for indications of impairment and to determine if the carrying value is recoverable and exceeds fair value. The carrying amount of long-lived assets is not recoverable if it exceeds the sum of undiscounted cash flows expected as a result from use and eventual disposition of the asset.

Because an interim goodwill assessment was completed, we also performed an interim assessment of long-lived assets as of August 31, 2019. The results of our analysis indicated that the long-lived assets were recoverable as of the assessment date and did not require further impairment review.

Other intangible assets, net includes customer lists, non-compete arrangements, patents, product development, and trademarks. The following table presents the balances within the consolidated and combined balance sheet as of:



(In millions)	September 30, 2019			December 29, 2018
Gross definite-lived intangible assets	$	1,007		$	449
Less: Accumulated amortization	(328		)	(241		)
Net definite-lived intangible assets	$	679		$	208

The following table presents our amortization expense:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2019		2018		2019		2018
Amortization expense	$	34	$	12	$	93	$	37