Note 3 - Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill — Our goodwill is tested for impairment annually as of October 31 for all of our reporting units, and more frequent if events or circumstances warrant such a review. We did not identify any events or circumstances during the first six months of 2022 that required an interim impairment test. We expect that the fair value of our reporting units will continue to exceed their carrying values in future periods.

The change in the carrying amount of goodwill in 2022 is due to currency fluctuation.

Changes in the carrying amount of goodwill by segment — 

	Light Vehicle		Commercial Vehicle			Off-Highway			Power Technologies		Total
Balance, December 31, 2021	$	—	$	201		$	281		$	—	$	482
Currency impact				(5	)		(19	)				(24	)
Balance, June 30, 2022	$	—	$	196		$	262		$	—	$	458

Components of other intangible assets — 

		June 30, 2022							December 31, 2021
	Weighted Average Useful Life (years)	Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment and Amortization			Net Carrying Amount
Amortizable intangible assets
Core technology	8	$	156	$	(111	)	$	45	$	161	$	(110	)	$	51
Trademarks and trade names	13		30		(12	)		18		31		(12	)		19
Customer relationships	8		502		(424	)		78		519		(431	)		88
Non-amortizable intangible assets
Trademarks and trade names			72					72		75					75
		$	760	$	(547	)	$	213	$	786	$	(553	)	$	233

The net carrying amounts of intangible assets, other than goodwill, attributable to each of our operating segments at  June 30, 2022 were as follows: Light Vehicle — $18, Commercial Vehicle — $71, Off-Highway — $119 and Power Technologies — $5.

Amortization expense related to amortizable intangible assets — 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Charged to cost of sales	$	2	$	2	$	4	$	5
Charged to amortization of intangibles		3		3		7		7
Total amortization	$	5	$	5	$	11	$	12

The following table provides the estimated aggregate pre-tax amortization expense related to intangible assets for each of the next five years based on June 30, 2022 exchange rates. Actual amounts may differ from these estimates due to such factors as currency translation, customer turnover, impairments, additional intangible asset acquisitions and other events.

	Remainder of 2022		2023		2024		2025		2026
Amortization expense	$	11	$	22	$	21	$	19	$	17