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Goodwill and Other Intangible Assets, Net
12 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net

Note 15. Goodwill and Other Intangible Assets, Net

 

Goodwill, Net

 

The following table sets forth the changes in the carrying amount of the Company’s goodwill, net by segment for the years ended December 31, 2020 and 2019.

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Titanium Technologies:

 

 

 

 

 

 

 

 

Balance at January 1,

 

$

13

 

 

$

13

 

Balance at December 31,

 

 

13

 

 

 

13

 

Thermal & Specialized Solutions:

 

 

 

 

 

 

 

 

Balance at January 1,

 

 

33

 

 

 

33

 

Balance at December 31,

 

 

33

 

 

 

33

 

Advanced Performance Materials:

 

 

 

 

 

 

 

 

Balance at January 1,

 

 

56

 

 

 

56

 

Balance at December 31,

 

 

56

 

 

 

56

 

Chemical Solutions:

 

 

 

 

 

 

 

 

Balance at January 1,

 

 

51

 

 

 

51

 

Balance at December 31,

 

 

51

 

 

 

51

 

Total goodwill, net

 

$

153

 

 

$

153

 

 


Chemours consists of four operating segments: Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions. The Company’s reporting units are consistent with its operating segments, with the exception of the Chemical Solutions segment, which is comprised of the Mining Solutions and Performance Chemicals and Intermediates reporting units. For the years ended December 31, 2020 and 2019, the Company did not have any adjustments to or transfers of its goodwill balances, which are recorded in U.S. dollars. The Company tested the goodwill balances attributable to each of its reporting units for potential impairment on October 1, 2020 and 2019, the dates of Chemours’ annual goodwill assessment. No goodwill impairments were recorded for the years ended December 31, 2020 and 2019, as the fair values of the Company’s reporting units that carry goodwill exceeded each respective reporting unit’s carrying amount on October 1, 2020 and 2019.

 

The total accumulated impairment losses included in the Company’s goodwill, net balance at December 31, 2020 and 2019 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, 2020 and 2019.

 

 

 

December 31, 2020

 

 

December 31, 2019

 

 

 

Cost

 

 

Accumulated

Amortization

 

 

Net

 

 

Cost

 

 

Accumulated

Amortization

 

 

Net

 

Customer lists

 

$

9

 

 

$

(9

)

 

$

 

 

$

9

 

 

$

(8

)

 

$

1

 

Customer relationships

 

 

22

 

 

 

(12

)

 

 

10

 

 

 

22

 

 

 

(8

)

 

 

14

 

Patents

 

 

19

 

 

 

(19

)

 

 

 

 

 

19

 

 

 

(19

)

 

 

 

Purchased trademarks

 

 

5

 

 

 

(3

)

 

 

2

 

 

 

5

 

 

 

(3

)

 

 

2

 

Purchased and licensed technology

 

 

3

 

 

 

(3

)

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

Other (1)

 

 

10

 

 

 

(8

)

 

 

2

 

 

 

10

 

 

 

(6

)

 

 

4

 

Total other intangible assets

 

$

68

 

 

$

(54

)

 

$

14

 

 

$

68

 

 

$

(47

)

 

$

21

 

 

(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, $7, and $6 for the years ended December 31, 2020, 2019, and 2018, respectively. The estimated aggregate pre-tax amortization expense for 2021, 2022, 2023, 2024, and 2025 is $7, $5, $1, less than $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.