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Goodwill and Other Intangibles | 12 Months Ended
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Dec. 31, 2019
Goodwill and Other Intangibles |
Goodwill and intangible assets | Note 8—Goodwill and Other Intangibles Goodwill—During the three months ended June 30, 2018, we classified as held for sale and impaired three ultra-deepwater floaters (see Note 7—Drilling Fleet). We identified the impairment of these assets as an indicator that our goodwill may be impaired. In the year ended December 31, 2018, as a result of our interim goodwill impairment test, we recognized a loss of $462 million ($0.99 per diluted share), which had no tax effect, associated with the impairment of the full balance of our goodwill. We estimated the fair value of the contract drilling services reporting unit using the income approach. Our estimate of fair value required us to use significant unobservable inputs, representative of a Level 3 fair value measurement, including assumptions related to the future performance of the reporting unit, such as future commodity prices, projected demand for our services, rig availability and dayrates. Finite-lived intangible assets and liabilities—The gross carrying amount and accumulated amortization of our drilling contract intangible assets were as follows (in millions): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended December 31, 2019 | ​ | Year ended December 31, 2018 |
​ | ​ | Gross | ​ | ​ | ​ | ​ | Net | ​ | Gross | ​ | ​ | ​ | ​ | Net |
​ | ​ | carrying | ​ | Accumulated | ​ | carrying | ​ | carrying | ​ | Accumulated | ​ | carrying |
​ |  | amount | ​ | amortization | ​ | amount |  | amount |  | amortization |  | amount |
Drilling contract intangible assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance, beginning of period |  | $ | 907 | ​ | $ | (112) | ​ | $ | 795 | ​ | $ | — | ​ | $ | — |  | $ | — | ​
Acquisition | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 907 | ​ | ​ | — | ​ | ​ | 907 | ​
Amortization | ​ | ​ | — | ​ | ​ | (187) | ​ | ​ | (187) | ​ | ​ | — | ​ | ​ | (112) | ​ | ​ | (112) | ​
Balance, end of period |  | $ | 907 | ​ | $ | (299) | ​ | $ | 608 | ​ | $ | 907 | ​ | $ | (112) |  | $ | 795 | ​
​ We recognized drilling contract intangible amortization as a reduction of contract drilling revenues. We expect to amortize the carrying amounts over the remaining contract periods, through March 2024. As of December 31, 2019, the estimated future amortization of contract intangible assets was as follows (in millions): ​
​ | ​ | ​ | ​
​ |  | Total
Years ending December 31, | ​ | ​ | ​
2020 |  | $ | 190
2021 | ​ | ​ | 190
2022 | ​ | ​ | 171
2023 | ​ | ​ | 52
2024 | ​ | ​ | 5
Total carrying amount of contract intangible assets | ​ | $ | 608
​ In connection with our acquisition of Ocean Rig, we acquired contracts related to the construction of two ultra-deepwater drillships Ocean Rig Santorini and Ocean Rig Crete. At December 31, 2018, the gross carrying amount of our construction contract liabilities was $132 million. In October 2019, we agreed with Samsung Heavy Industries Co., Ltd. (“SHI”) to cancel the construction contracts for the drillships in exchange for the parties terminating their respective obligations and liabilities under the construction contracts and our subsidiaries releasing to SHI their respective interests in the rigs. As a result, in the three months ended December 31, 2019, we eliminated the construction contract intangible liabilities and recognized income of $132 million, recorded in other income, net.

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