4. GOODWILL AND PURCHASED INTANGIBLE ASSETS

Goodwill

The carrying amounts of goodwill by segment are included in the tables below. Foreign currency fluctuations are included within other adjustments.



	January 1, 2018															December 31, 2018
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment			Other			Goodwill		Accumulated Impairment Losses			Total
Software	$	1,944	$	(7	)	$	1,937	$	107	$	—		$	(10	)	$	2,041	$	(7	)	$	2,034
Services	658		—			658		—		—			—			658		—			658
Hardware	162		(16		)	146		—		(146		)	—			162		(162		)	—
Total goodwill	$	2,764	$	(23	)	$	2,741	$	107	$	(146	)	$	(10	)	$	2,861	$	(169	)	$	2,692



	January 1, 2017													December 31, 2017
In millions	Goodwill		Accumulated Impairment Losses			Total		Additions		Impairment		Other		Goodwill		Accumulated Impairment Losses			Total
Software	$	1,930	$	(7	)	$	1,923	$	—	$	—	$	14	$	1,944	$	(7	)	$	1,937
Services	658		—			658		—		—		—		658		—			658
Hardware	162		(16		)	146		—		—		—		162		(16		)	146
Total goodwill	$	2,750	$	(23	)	$	2,727	$	—	$	—	$	14	$	2,764	$	(23	)	$	2,741

Late in the quarter ended June 30, 2018, we determined there was an indication that the carrying value of the net assets assigned to the Hardware reporting unit may not be recoverable. This determination was based on the lowering of our full year forecast for 2018, driven by reduced revenue and gross margin rates expected for the third and fourth quarters of 2018, and the resulting impact on the current year and future cash flow projections of the Hardware reporting unit.

Given the undiscounted cash flows of the asset group, which we determined to be at the reporting unit level, were below the carrying value of the net assets, we recorded an impairment charge for the difference between the fair value and the carrying value of the long-lived assets. The fair value of the long-lived assets was determined based on the nature of the asset through either third party appraisals, replacement cost or discounted cash flow analysis.

As a result, in the three months ended June 30, 2018 the Company recorded impairment charges of $21 million related to property, plant and equipment held and used in NCR's hardware reporting unit, $16 million related to purchased intangibles and $146 million for goodwill assigned to the Hardware reporting unit. These charges were recorded in the line item asset impairment charges in our Consolidated Statement of Operations for the year ended December 31, 2018.

As discussed in Note 1, “Basis of Presentation and Significant Accounting Policies,” NCR completed the annual goodwill impairment test during the fourth quarter of 2018, which did not indicate an impairment existed for the Software or Services segments.

Purchased Intangible Assets

NCR’s purchased intangible assets were specifically identified when acquired, and are deemed to have finite lives. These assets are reported in intangibles, net in the Consolidated Balance Sheets. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below:



	Amortization Period (in Years)	December 31, 2018					December 31, 2017
In millions	Amortization Period (in Years)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Identifiable intangible assets
Reseller & customer relationships	1 - 20	$	726	$	(218	)	$	659	$	(170	)
Intellectual property	2 - 8	443		(373		)	410		(351		)
Customer contracts	8	89		(87		)	89		(81		)
Tradenames	2 - 10	75		(60		)	73		(51		)
Total identifiable intangible assets		$	1,333	$	(738	)	$	1,231	$	(653	)

The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:



	For the year ended December 31, 2018		For the years ended December 31 (estimated)
In millions	For the year ended December 31, 2018		2019		2020		2021		2022		2023
Amortization expense	$	85	$	88	$	69	$	60	$	55	$	53