Other Intangible Assets and Liabilities

In July 2018, BNSF Logistics, LLC, a wholly-owned, third-party logistics company, made an immaterial acquisition of a company, resulting in the recognition of $6 million in goodwill. At September 30, 2018 and December 31, 2017, the carrying value of goodwill was $14,851 million and $14,845 million, respectively.

Intangible assets and liabilities were as follows (in millions):



	As of September 30, 2018				As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Intangible assets	$	662	$	280	$	647	$	253
Intangible liabilities	$	1,403	$	1,000	$	1,403	$	932

As of September 30, 2018 and December 31, 2017, intangible assets primarily consisted of franchise and customer assets. Intangible liabilities primarily consisted of customer and shortline contracts which were in an unfavorable position at the date of Merger.

Amortizable intangible assets and liabilities are amortized based on the estimated pattern in which the economic benefits are expected to be consumed or on a straight-line basis over their estimated economic lives.

Amortization of intangible assets and liabilities was as follows (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Amortization of intangible assets	$	9	$	9	$	27	$	27
Amortization of intangible liabilities	$	23	$	24	$	68	$	72

Amortization of intangible assets and liabilities for the next five years is expected to approximate the following (in millions):



	Amortization of intangible assets		Amortization of intangible liabilities
Remainder of 2018	$	9	$	22
2019	$	36	$	27
2020	$	36	$	26
2021	$	33	$	24
2022	$	31	$	23