Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in goodwill by segment for the year ended December 31, 2020, and 2019, are provided in the following table:


	Siding		OSB		Other		Total
Balance at December 31, 2018	$	—	$	16	$	—	$	16
Additions (see Note 8)	4		—		10		14

Balance at December 31, 2019	4		16		10		30
Additions	—		—		—		—
Impairment charges	—		—		(5)		(5)
Balance at December 31, 2020	$	4	$	16	$	5	$	25

Changes in other intangible assets for the year ended December 31, 2020, and 2019, are provided in the following table:


	Timber Licenses1		Developed Technology		Trademark		Total Other Intangibles
Balance at December 31, 2018	$	41	$	10	$	—	$	51
Additions (see Note 8)	—		12		3		15
Amortization	(3)		(2)		—		(5)
Balance at December 31, 2019	38		20		3		61


Amortization	(4)		(1)		—		(5)
Balance at December 31, 2020	$	34	$	19	$	3	$	56

1Timber licenses are included in Timber and timberlands on the Consolidated Balance Sheets.

During the second quarter of 2020, we performed an interim evaluation of impairment on the goodwill associated with our off-site construction operation Entekra Holdings, LLC (Entekra) due in part to the impacts of the COVID-19 pandemic on this reporting unit. As a result, we recognized a non-cash impairment charge of $5 million during the year ended December 31, 2020, within loss on impairment in the Consolidated Statements of Income. We applied a discounted cash flow model in which cash flows are projected using internal forecasts over future periods, plus a terminal value, and discounted to present value using a risk-adjusted rate of return. The cash flow forecasts included estimates of growth rates based on our current views of the long-term outlook of the reporting unit and may materially differ from actual results. The discount rate assumptions were based on an assessment of the risk inherent in the future cash flows of each reporting unit using industry, peer group, and company-specific information.

Included in the balance of timber licenses are values allocated to Canadian forest licenses whose initial value of $91 million is amortized over the estimated useful life of twenty to twenty-five years. Amortization expense related to definite-lived intangible assets was $5 million, $5 million and $4 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Amortization of the above intangible assets will be $5 million per year over the next five years.