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Goodwill and Other Intangibles | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES Goodwill The following table summarizes goodwill attributable to our reporting units for the periods presented:
Millions of dollars | North America |  | EMEA |  | Latin America |  | Asia |  | Total Whirlpool
Ending balance December 31, 2017 | $ | 1,755 |  |  | $ | 920 |  |  | $ | 5 |  |  | $ | 438 |  |  | $ | 3,118 |
Reassignment of goodwill (1) | (54 | ) |  | — |  |  | 53 |  |  | 1 |  |  | — |
Impairment (2) | — |  |  | (579 | ) |  | — |  |  | — |  |  | (579 | )
Reclassification to asset held for sale | — |  |  | — |  |  | (23 | ) |  | — |  |  | (23 | )
Currency translation adjustment | (8 | ) |  | (32 | ) |  | (2 | ) |  | (23 | ) |  | (65 | )
Ending balance December 31, 2018 | $ | 1,693 |  |  | $ | 309 |  |  | $ | 33 |  |  | $ | 416 |  |  | $ | 2,451 |
Currency translation adjustment | 2 |  |  | (7 | ) |  | — |  |  | (6 | ) |  | (11 | )
Ending balance December 31, 2019 | $ | 1,695 |  |  | $ | 302 |  |  | $ | 33 |  |  | $ | 410 |  |  | $ | 2,440 |
(1) Effective January 1, 2018, we realigned the composition of certain segments to align with our new leadership reporting structure. We now report our Mexico business as a part of our Latin America segment. As a result, we reassigned approximately $53 million of goodwill, using a relative fair value approach, from the North America reporting unit to the Latin America reporting unit. (2) The EMEA reporting unit has $579 million of accumulated impairment losses at December 31, 2019. No other reporting units have accumulated impairment losses at December 31, 2019. 2019 and 2018 annual impairment assessment We completed our annual impairment test for goodwill as of October 1, 2019 and 2018. The Company elected to bypass the qualitative assessment and perform a quantitative assessment to evaluate goodwill for all our reporting units. Based on the quantitative assessment we determined there was no impairment of goodwill. 2018 interim impairment assessment During the second quarter of 2018, we identified indicators of goodwill impairment for our EMEA reporting unit based on our qualitative assessment, which required us to complete an interim quantitative impairment assessment. The primary indicator of impairment for our EMEA reporting unit was the segment's continuing negative financial performance in 2018 that did not improve as anticipated, primarily driven by significant volume loss. The actual operating results during the second quarter of 2018 were significantly lower than forecasted resulting in weak business performance. In performing our quantitative assessment of goodwill, we estimated the reporting unit's fair value under an income approach using a discounted cash flow model. The income approach used the reporting unit's projections of estimated operating results and cash flows that were discounted using a market participant discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections included revenue growth, EBIT margins and the discount rate. The financial projections reflected management's best estimate of economic and market conditions over the projected period including forecasted revenue growth, EBIT margins, tax rate, capital expenditures, depreciation and amortization, changes in working capital requirements and the terminal growth rate. Based on our interim quantitative impairment assessment, the carrying value of the EMEA reporting unit exceeded its fair value by $579 million and we recorded a goodwill impairment charge in 2018. Other Intangible Assets The following table summarizes other intangible assets for the period presented:
|  | December 31, 2019 |  | December 31, 2018
Millions of dollars |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Other intangible assets, finite lives: |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships (1) |  | $ | 624 |  |  | $ | (377 | ) |  | $ | 247 |  |  | $ | 622 |  |  | $ | (330 | ) |  | $ | 292 |
Patents and other (2) |  | 324 |  |  | (216 | ) |  | 108 |  |  | 328 |  |  | (197 | ) |  | 131 |
Total other intangible assets, finite lives |  | $ | 948 |  |  | $ | (593 | ) |  | $ | 355 |  |  | $ | 950 |  |  | $ | (527 | ) |  | $ | 423 |
Trademarks, indefinite lives (3) |  | 1,870 |  |  | — |  |  | 1,870 |  |  | 1,873 |  |  | — |  |  | 1,873 |
Total other intangible assets |  | $ | 2,818 |  |  | $ | (593 | ) |  | $ | 2,225 |  |  | $ | 2,823 |  |  | $ | (527 | ) |  | $ | 2,296 |
(1) Customer relationships have an estimated useful life of 5 to 19 years. (2) Patents and other intangibles have an estimated useful life of 3 to 43 years. Includes impairment charges of $60 million at June 30, 2018. (3) Includes impairment charges of $108 million at June 30, 2018. Trademarks includes the Indesit and Hotpoint* indefinite-lived brand intangible assets of approximately $213 million and $151 million, respectively, at December 31, 2019. 2019 and 2018 annual impairment assessment We completed our annual impairment assessment for other intangible assets as of October 1, 2019. The Company elected to bypass the qualitative assessment and perform a quantitative assessment to evaluate certain brand trademarks. Based on the quantitative assessment we determined there was no impairment of intangible assets. *Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. We completed our annual impairment assessment for other intangible assets as of October 1, 2018. The Company elected to bypass the qualitative assessment and perform a quantitative assessment to evaluate certain brand trademarks. Based on the results of the quantitative assessment, we determined there was an immaterial impairment as a result of the restructuring initiative announced in the fourth quarter to exit from the domestic sales operations in Turkey (not including manufacturing operations). See Note 14 to the Consolidated Financial Statements for additional information. There was no impairment of any other indefinite-life intangible assets. The Company elected to perform a qualitative assessment on all other indefinite-life intangible assets at both annual impairment assessment dates noting no events that indicated that the fair value was less than carrying value that would require a quantitative impairment assessment. See Note 11 to the Consolidated Financial Statements for additional information. 2018 interim impairment assessment During the second quarter of 2018, we identified indicators of impairment associated with other intangible assets in our EMEA reporting unit based on our qualitative assessment, which required us to complete an interim quantitative impairment assessment. The primary indicator of impairment was the continuing decline in revenue from weaker volumes in the first half of 2018 that did not improve as anticipated. The actual operating results for the second quarter of 2018 were significantly lower than forecasted. In performing our quantitative assessment of other intangible assets, primarily brands, we estimated the fair value using the relief-from-royalty method which required assumptions related to projected revenues from our long-range plans; assumed royalty rates that could be payable if we did not own the brand; and a market participant discount rate based on a weighted-average cost of capital. Based on our interim quantitative impairment assessment at June 30, 2018, the carrying value of certain other intangible assets, including Indesit and Hotpoint*, exceeded their fair value, and we recorded an impairment charge of $168 million in 2018. The estimates of future cash flows used in determining the fair value of goodwill and intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management's estimates due to changes in business conditions, operating performance and economic conditions. Amortization expense was $69 million, $75 million and $79 million for the years ended December 31, 2019, 2018 and 2017, respectively. The following table summarizes our future estimated amortization expense by year:
Millions of dollars |
2020 | $ | 58 |
2021 | 56 |
2022 | 49 |
2023 | 42 |
2024 | 30 |
*Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas.

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