GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

NOTE 7 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

Goodwill

The following is a summary of Goodwill by segment:

	(In Millions)
	June 30, 2022		December 31, 2021
Steelmaking	$	975	$	942
Other Businesses	174		174
Total goodwill	$	1,149	$	1,116

The increase of $33 million in the balance of Goodwill in our Steelmaking segment as of June 30, 2022, compared to December 31, 2021, is due to the change in estimated identified goodwill as a result of measurement period adjustments to the preliminary purchase price allocation for the FPT Acquisition. Refer to NOTE 3 - ACQUISITIONS for further details.

Intangible Assets and Liabilities

The following is a summary of our intangible assets and liabilities:

	(In Millions)
	June 30, 2022						December 31, 2021
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Intangible assets1:
Customer relationships	$	90	$	(11)	$	79	$	95	$	(8)	$	87
Developed technology	60		(8)		52		60		(6)		54
Trade names and trademarks	18		(3)		15		18		(2)		16
Mining permits	72		(26)		46		72		(26)		46
Supplier relationships	21		(1)		20		18		—		18
Total intangible assets	$	261	$	(49)	$	212	$	263	$	(42)	$	221
Intangible liabilities2:
Above-market supply contracts	$	(71)	$	17	$	(54)	$	(71)	$	14	$	(57)
1 Intangible assets are classified as Other non-current assets. Amortization related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
2 Intangible liabilities are classified as Other non-current liabilities. Amortization of all intangible liabilities is recognized in Cost of goods sold.

Amortization expense related to intangible assets was $3 million and $7 million for the three and six months ended June 30, 2022, respectively, and $2 million and $5 million for the three and six months ended June 30, 2021, respectively. Estimated future amortization expense is $6 million for the remainder of 2022 and $13 million annually for the years 2023 through 2027.

Income from amortization related to the intangible liabilities was $2 million and $3 million for the three and six months ended June 30, 2022, respectively, and $2 million and $3 million for the three and six months ended June 30, 2021, respectively. Estimated future income from amortization is $2 million for the remainder of 2022 and $5 million annually for the years 2023 through 2027.