GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017:



Goodwill
In millions
Balance at Jan 1, 2017	$	15,272
Sale of SKC Haas Display Films ¹	(34		)
Divestiture of the EAA Business ²	(23		)
Divestiture of the DAS Divested Ag Business ³	(128		)
Dissolution of joint venture ⁴	48
Goodwill impairment	(1,491		)
Foreign currency impact	299
Other	(5		)
Balance at Dec 31, 2017	$	13,938
Foreign currency impact	(80		)
Other	(10		)
Balance at Dec 31, 2018	$	13,848


1.	On June 30, 2017, the Company sold its ownership interest in the SKC Haas Display Films group of companies. See Note 18 for additional information.


2.	On September 1, 2017, the Company divested its EAA Business to SK Global Chemical Co., Ltd. See Note 6 for additional information.


3.	On November 30, 2017, the Company divested the DAS Divested Ag Business to CITIC Agri Fund. See Note 6 for additional information.


4.	On December 31, 2017, the Company dissolved a crude acrylic acid joint venture. See Note 23 for additional information.

Effective with the Merger, the Company updated its reporting units to align with the level at which discrete financial information is available for review by management. A relative fair value method was used to reallocate goodwill for reporting units of which the composition had changed. The new reporting units are: Agriculture, Coatings & Performance Monomers, Construction Chemicals, Consumer Solutions, Electronics & Imaging, Energy Solutions, Hydrocarbons & Energy, Industrial Biosciences, Industrial Solutions, Nutrition & Health, Packaging and Specialty Plastics, Polyurethanes & CAV, Safety & Construction and Transportation & Advanced Polymers. At December 31, 2017, goodwill was carried by all of these reporting units.

In 2018, the Energy Solutions and Construction Chemicals reporting units were combined into Industrial Solutions and Polyurethanes & CAV, respectively. At December 31, 2018, goodwill was carried by all reporting units.

Goodwill Impairments

The carrying amounts of goodwill at December 31, 2018 and 2017, were net of accumulated impairments of $1,920 million.

Goodwill Impairment Testing

The Company performs an impairment test of goodwill annually in the fourth quarter. In 2018, the Company performed quantitative testing for 2 reporting units (11 in 2017 and 3 in 2016) and a qualitative assessment was performed for the remaining reporting units. The qualitative assessments indicated that it was not more likely than not that fair value was less than the carrying value for those reporting units included in the qualitative test.

The quantitative testing conducted in 2018 and 2016 concluded that no goodwill impairments existed.

Upon completion of the quantitative testing in the fourth quarter of 2017, the Company determined the Coatings & Performance Monomers reporting unit was impaired. Throughout 2017, the Coatings & Performance Monomers reporting unit did not consistently meet expected financial performance targets, primarily due to increasing commoditization in coatings markets and competition, as well as customer consolidation in end markets which reduced growth opportunities. As a result, the Coatings & Performance Monomers reporting unit lowered future revenue and profitability expectations. The fair value of the Coatings & Performance Monomers reporting unit was determined using a discounted cash flow methodology that reflected reductions in projected revenue growth rates, primarily driven by modified sales volume and pricing assumptions, as well as revised expectations for future growth rates. These discounted cash flows did not support the carrying value of the Coatings & Performance Monomers reporting unit. As a result, the Company recorded a goodwill impairment charge for the Coatings & Performance Monomers reporting unit of $1,491 million in the fourth quarter of 2017, included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income. The Coatings & Performance Monomers reporting unit carried $1,071 million of goodwill at December 31, 2017. No other goodwill impairments were identified as a result of the 2017 testing.

Other Intangible Assets

The following table provides information regarding the Company’s other intangible assets:



Other Intangible Assets at Dec 31	2018							2017
In millions	Gross Carrying Amount		Accum Amort			Net		Gross Carrying Amount		Accum Amort			Net
Intangible assets with finite lives:
Developed technology	$	3,255	$	(1,934	)	$	1,321	$	3,263	$	(1,690	)	$	1,573
Software	1,529		(876		)	653		1,420		(780		)	640
Trademarks/tradenames	688		(631		)	57		697		(570		)	127
Customer-related	4,911		(2,151		)	2,760		5,035		(1,965		)	3,070
Other	243		(170		)	73		245		(156		)	89
Total other intangible assets, finite lives	$	10,626	$	(5,762	)	$	4,864	$	10,660	$	(5,161	)	$	5,499
In-process research and development ("IPR&D")	49		—			49		50		—			50
Total other intangible assets	$	10,675	$	(5,762	)	$	4,913	$	10,710	$	(5,161	)	$	5,549

The following table provides information regarding amortization expense related to intangible assets:



Amortization Expense	2018		2017		2016
In millions	2018		2017		2016
Other intangible assets, excluding software	$	622	$	624	$	544
Software, included in “Cost of sales”	$	100	$	87	$	73

In the fourth quarter of 2017, the Company wrote-off $69 million of intangible assets (including $11 million of IPR&D) as part of the Synergy Program. In the second quarter of 2016, the Company wrote-off $11 million of IPR&D as part of the 2016 restructuring charge. These charges were included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. See Note 7 for additional information.

Total estimated amortization expense for the next five fiscal years is as follows:



Estimated Amortization Expense for Next Five Years
In millions
2019	$	648
2020	$	614
2021	$	585
2022	$	516
2023	$	488