XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill | 8. Goodwill and Other Intangible Assets Goodwill The gross carrying amounts and changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows:
|  | Vinyls Segment |  | Olefins Segment |  | Total
Balance at December 31, 2018 |  | $ | 972 |  |  | $ | 30 |  |  | $ | 1,002 |
Goodwill acquired during the year |  | 67 |  |  | — |  |  | 67 |
Effects of changes in foreign exchange rates |  | 5 |  |  | — |  |  | 5 |
Balance at December 31, 2019 |  | 1,044 |  |  | 30 |  |  | 1,074 |
Effects of changes in foreign exchange rates |  | 9 |  |  | — |  |  | 9 |
Balance at December 31, 2020 |  | $ | 1,053 |  |  | $ | 30 |  |  | $ | 1,083 |
Vinyls Segment Goodwill The Company performed its annual impairment analysis for the Vinyls reporting units during the second quarter of 2020. The fair values of the North America and other reporting units assessed during the April 2020 impairment analysis were determined using both a discounted cash flow methodology and a market value methodology. Based upon this assessment, the Company determined that the fair values of the Vinyls reporting units were greater than their carrying value. The discounted cash flow projections were based on a long-term forecast to reflect the cyclicality of the housing and construction markets as the Company's Vinyls businesses are significantly influenced by those markets. The forecast was based on prices and spreads projected by IHS Markit ("IHS"), a chemical industry organization offering market and business advisory services for the chemical market, historical results and estimates by management, including its strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included projected sales volumes based on production capacities. The future cash flows were discounted to present value using a discount rate ranging from 7.8% to 10.8%. The significant assumptions used in determining the fair values of the reporting units using the market value methodology include the determination of appropriate market comparables and the estimated multiples of net income before interest expense, income taxes, depreciation and amortization ("EBITDA") a willing buyer is likely to pay. Olefins Segment Goodwill The Company performed its annual impairment analysis for the Olefins segment, the reporting unit assessed, during the fourth quarter of 2020. The fair value of the Olefins segment reporting unit assessed during the October 2020 impairment analysis was determined using both a discounted cash flow methodology and a market value methodology. Based upon this assessment, the Company determined that the fair value of the Olefins segment reporting unit was greater than its carrying value. The discounted cash flow projections were based on a long-term forecast to reflect the cyclicality of the Company's Olefins business. The forecast was based on prices and spreads projected by IHS, historical results and estimates by management, including its strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included projected sales volumes based on production capacities. The future cash flows were discounted to present value using a discount rate of 9.0%. The significant assumptions used in determining the fair values of the reporting unit using the market value methodology included the determination of appropriate market comparables and the estimated multiples of EBITDA a willing buyer was likely to pay. There were no events or circumstances indicating that the fair value of either of the Vinyls or Olefins reporting units had been reduced below its carrying value during 2020. Intangible Assets Intangible assets consisted of the following at December 31:
|  | 2020 |  | 2019 |  | Weighted Average Life
|  | Cost |  | Accumulated Amortization |  | Net |  | Cost |  | Accumulated Amortization |  | Net |
Customer relationships |  | $ | 845 |  |  | $ | (401) |  |  | $ | 444 |  |  | $ | 832 |  |  | $ | (309) |  |  | $ | 523 |  |  | 11
Other intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Licenses and intellectual property |  | 178 |  |  | (94) |  |  | 84 |  |  | 172 |  |  | (79) |  |  | 93 |  |  | 13
Trademarks |  | 125 |  |  | (50) |  |  | 75 |  |  | 120 |  |  | (37) |  |  | 83 |  |  | 13
Other |  | 35 |  |  | (26) |  |  | 9 |  |  | 35 |  |  | (24) |  |  | 11 |  |  | 11
Total other intangible assets |  | $ | 338 |  |  | $ | (170) |  |  | $ | 168 |  |  | $ | 327 |  |  | $ | (140) |  |  | $ | 187 |  |  |
Scheduled amortization of intangible assets for the next five years is as follows: $120, $108, $60, $54 and $52 in 2021, 2022, 2023, 2024 and 2025, respectively.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration