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Goodwill and Other Intangible Assets, Net
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net

Note 15. Goodwill and Other Intangible Assets, Net

 

Goodwill 

 

The following table sets forth the changes in the carrying amount of the Company’s goodwill by segment for the years ended December 31, 2019 and 2018.

  

 

 

December 31,

 

 

 

2019

 

 

2018

 

Fluoroproducts:

 

 

 

 

 

 

 

 

Balance at January 1,

 

$

89

 

 

$

85

 

Acquisition of business

 

 

 

 

 

4

 

Balance at December 31,

 

 

89

 

 

 

89

 

Chemical Solutions:

 

 

 

 

 

 

 

 

Balance at January 1,

 

 

51

 

 

 

55

 

Goodwill impairment

 

 

 

 

 

(4

)

Balance at December 31,

 

 

51

 

 

 

51

 

Titanium Technologies:

 

 

 

 

 

 

 

 

Balance at January 1,

 

 

13

 

 

 

13

 

Balance at December 31,

 

 

13

 

 

 

13

 

Total goodwill

 

$

153

 

 

$

153

 

 


Chemours consists of three operating segments: Fluoroproducts, Chemical Solutions, and Titanium Technologies. The Company defines its reporting units as one level below these operating segments, with the exception of the Titanium Technologies segment, which is both an operating segment and a reporting unit. The Company tested the goodwill balances attributable to each of its reporting units for potential impairment on October 1, 2019 and 2018, the dates of Chemours’ annual goodwill assessment, and concluded that $4 of goodwill associated with the Performance Chemicals and Intermediates reporting unit in the Chemical Solutions segment was impaired at October 1, 2018. No further goodwill impairments were recorded for the years ended December 31, 2019 and 2018, as the fair values of the Company’s other reporting units that carry goodwill exceeded each respective reporting unit’s carrying amount on October 1, 2019 and 2018.

 

The total accumulated impairment losses included in the Company’s goodwill balance at December 31, 2019 and 2018 amounted to $4.

 

Other Intangible Assets, Net

 

The following table sets forth the gross carrying amounts and accumulated amortization of the Company’s other intangible assets by major class at December 31, 2019 and 2018.

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

Cost

 

 

Accumulated

Amortization

 

 

Net

 

 

Cost

 

 

Accumulated

Amortization

 

 

Net

 

Customer lists

 

$

9

 

 

$

(8

)

 

$

1

 

 

$

9

 

 

$

(8

)

 

$

1

 

Customer relationships

 

 

22

 

 

 

(8

)

 

 

14

 

 

 

22

 

 

 

(3

)

 

 

19

 

Patents

 

 

19

 

 

 

(19

)

 

 

 

 

 

19

 

 

 

(19

)

 

 

 

Purchased trademarks

 

 

5

 

 

 

(3

)

 

 

2

 

 

 

5

 

 

 

(3

)

 

 

2

 

Purchased and licensed technology

 

 

3

 

 

 

(3

)

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

Other (1)

 

 

10

 

 

 

(6

)

 

 

4

 

 

 

10

 

 

 

(4

)

 

 

6

 

Total other intangible assets, net

 

$

68

 

 

$

(47

)

 

$

21

 

 

$

68

 

 

$

(40

)

 

$

28

 

 

(1)

Represents non-cash favorable supply contracts acquired in connection with the sale of the Sulfur business and recognized during the third quarter of 2016 based on the present value of the difference between their contractual cash flows and estimated cash flows had the contracts been executed at a determinable market price. These contract intangibles will be amortized to cost of goods sold over the remaining life of the supply contracts through 2021.

 

The aggregate pre-tax amortization expense for definite-lived intangible assets was $7, $6, and $4 for the years ended December 31, 2019, 2018, and 2017, respectively. The estimated aggregate pre-tax amortization expense for 2020, 2021, 2022, 2023, and 2024 is $7, $7, $5, $1, and less than $1, respectively. Definite-lived intangible assets are amortized over their estimated useful lives, generally for periods ranging from five to 20 years. The reasonableness of the useful lives of these assets is periodically evaluated. The Company does not have any indefinite-lived intangible assets.