GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS The Company records goodwill as the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the reporting unit may be less than its carrying amount.

The changes in the carrying amount of goodwill were as follows:


(In millions)	HVAC		Refrigeration		Fire & Security		Total
Balance as of December 31, 2019	$	5,351	$	1,228	$	3,305	$	9,884

Foreign currency translation	138		23		94		255
Balance as of December 31, 2020	$	5,489	$	1,251	$	3,399	$	10,139
Goodwill resulting from business combinations (1)	261		(1)		60		320
Reclassified to held for sale (2)	—		—		(940)		(940)
Foreign currency translation	(92)		(22)		(56)		(170)
Balance as of December 31, 2021	$	5,658	$	1,228	$	2,463	$	9,349

(1) See Note 19 - Acquisitions for additional information.

(2) See Note 20 - Divestitures for additional information.

Indefinite-lived intangible assets are tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the asset may be less than its carrying amount. All other intangible assets with finite useful lives are amortized over their estimated useful lives.

Identifiable intangible assets consisted of the following:


	2021						2020
(In millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Amortized:
Customer relationships	$	945	$	(699)	$	246	$	1,558	$	(1,285)	$	273
Patents and trademarks	232		(182)		50		301		(222)		79
Monitoring lines	—		—		—		71		(59)		12
Service portfolios and other	688		(539)		149		644		(542)		102
	1,865		(1,420)		445		2,574		(2,108)		466
Unamortized:
Trademarks and other	64		—		64		571		—		571
Intangible assets, net	$	1,929	$	(1,420)	$	509	$	3,145	$	(2,108)	$	1,037

Amortization of intangible assets was $98 million, $102 million and $116 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The estimated future amortization of intangible assets is as follows:


(In millions)	2022		2023		2024		2025		2026
Future amortization	$	80	$	75	$	69	$	59	$	47

Annual Impairment Assessment

The Company tested its goodwill and indefinite-lived intangible assets for impairment as part of its annual assessment. For each test, the Company qualitatively assessed all relevant events or circumstances that could impact the estimate of fair value. Based upon this assessment, the Company determined that it was more likely than not that goodwill and indefinite-lived intangible assets were not impaired.