GOODWILL AND OTHER INTANGIBLES

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES

During the fourth quarter of each year, the Company assesses its goodwill assigned to each of its reporting units. In addition, the Company may test goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value. No events or circumstances were noted in the first half of 2021 requiring additional assessment or testing. Future changes in the judgments, assumptions and estimates from those used in acquisition-related valuations and goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect the Company’s financial statements in any given year.

A summary of the changes in the carrying amount of goodwill are as follows:

(in millions)	Air Management		e-Propulsion & Drivetrain		Aftermarket		Total
Gross goodwill balance, December 31, 2020	$	1,517	$	1,313	$	299	$	3,129
Accumulated impairment losses, December 31, 2020	(502)		—		—		(502)
Net goodwill balance, December 31, 2020	$	1,015	$	1,313	$	299	$	2,627
Goodwill during the period:
Acquisition	707		—		—		707
Measurement period adjustments	—		12		11		23
Other, primarily translation adjustment	(11)		(22)		1		(32)
Ending balance, June 30, 2021	$	1,711	$	1,303	$	311	$	3,325

The Company’s other intangible assets, primarily from acquisitions, consist of the following:

		June 30, 2021						December 31, 2020
(in millions)	Estimated useful lives (years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets:
Patented and unpatented technology	7 - 15	$	449	$	88	$	361	$	383	$	77	$	306
Customer relationships	7 - 15	918		290		628		893		272		621
Miscellaneous	1 - 13	24		7		17		10		7		3
Total amortized intangible assets		1,391		385		1,006		1,286		356		930
Unamortized trade names		166		—		166		166		—		166
Total other intangible assets		$	1,557	$	385	$	1,172	$	1,452	$	356	$	1,096