Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill and other intangible asset balances and adjustments to those balances for the years ended December 31, 2021 and 2020:


	Goodwill		Intangible Assets
(Dollars in millions)	Net Carrying Amount		Cost		Accumulated Amortization		Net Carrying Amount		Total Goodwill and Other Intangible Assets - Net
Balance at December 31, 2019	$	63	$	—	$	—	$	—	$	63
Additions	—		—		—		—		—
Amortization	—		—		—		—		—
Balance at December, 31, 2020	$	63	$	—	$	—	$	—	$	63
Additions	213		180		—		180		393
Amortization	—		—		(5)		(5)		(5)
Balance at December, 31, 2021	$	276	$	180	$	(5)	$	175	$	451

As a result of the acquisition of Quality Carriers, Inc. on July 1, 2021, CSX recognized goodwill and intangible assets. The goodwill of $213 million was calculated as the excess of the consideration paid over the fair value of net assets assumed as of July 1, 2021 and relates primarily to the ability of CSX to extend the reach of its network and gain access to new products, markets, and regions through a unique and competitive multimodal solution that leverages the reach of truck transportation with the cost advantage of rail-based services. Goodwill recognized in the acquisition is deductible for tax purposes. Prior to 2021, the Company's goodwill balance related to affiliates of CSXT, primarily P&L Transportation, Inc.

Intangible assets of $180 million consist of $150 million of customer relationships and $30 million of trade names that will be amortized over a weighted-average period of 20 years and 15 years, respectively.

In fourth quarter 2021, CSX performed its annual evaluation of each reporting unit's goodwill and intangible assets for impairment. No impairment was recorded as a result of this evaluation.