GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2022

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 and indefinite lived intangible assets 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 three months of 2022 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, 2021	$	2,169	$	1,301	$	311	$	3,781
Accumulated impairment losses, December 31, 2021	(502)		—		—		(502)
Net goodwill balance, December 31, 2021	$	1,667	$	1,301	$	311	$	3,279
Goodwill during the period:
Acquisition	—		132		—		132
Other, primarily translation adjustment	(28)		(4)		9		(23)
Ending balance, March 31, 2022	$	1,639	$	1,429	$	320	$	3,388

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

		March 31, 2022						December 31, 2021
(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	5 - 15	$	465	$	113	$	352	$	443	$	105	$	338
Customer relationships	7 - 15	929		319		610		877		310		567
Miscellaneous	2 - 13	14		7		7		14		7		7
Total amortized intangible assets		1,408		439		969		1,334		422		912
Unamortized trade names		178		—		178		179		—		179
Total other intangible assets		$	1,586	$	439	$	1,147	$	1,513	$	422	$	1,091