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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | NOTE 8. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets totaled $369 million and $135 million, respectively, at March 31, 2020, compared to $565 million and $137 million, respectively, at December 31, 2019. Goodwill and intangible assets with indefinite useful lives are tested for impairment annually either on a quantitative or qualitative basis, or more frequently when events or circumstances change that indicate the fair value of the asset may be below its carrying amount. As a result of the COVID-19 pandemic and the resulting decline in the macroeconomic environment, as well as a significant decrease in our market capitalization, we performed an interim impairment analysis as of March 31, 2020 utilizing a discounted cash flow model. The most critical assumptions used in the calculation of the estimated fair value of our reporting units are the extent and duration of, as well as the timing of the recovery from, the ongoing COVID-19 pandemic, the projected long term operating margin and the discount rate. Since the date of our last annual quantitative goodwill impairment assessment, the overall discount rate increased, reflecting an increase in the risk premium components of the rate partially offset by a decrease in the risk-free interest rate component as a result of the current macroeconomic environment. Based on our current forecasts, we also gave consideration to the expected near-term negative cash flow impact of the ongoing COVID-19 pandemic and subsequent recovery, as well as the decrease in our market capitalization. Based on the results of our interim quantitative assessment, we recorded a non-cash impairment charge of $182 million for the EMEA reporting unit during the first quarter of 2020 to reduce the recorded balance of the EMEA reporting unit’s goodwill from $400 million to $218 million. As a result of this partial impairment, the fair value of the EMEA reporting unit now approximates its carrying value. As of March 31, 2020, the goodwill associated with reporting units in our Americas and Asia Pacific segments was $91 million and $60 million, respectively. If we make adverse revisions to our significant assumptions, including as a result of business performance or market conditions, or if our market capitalization declines further and if such a decline becomes indicative that the fair value of our reporting units has declined below their carrying values, we may need to record a material, non-cash goodwill impairment charge in a future period. Intangible assets with indefinite lives totaled $118 million at both March 31, 2020 and December 31, 2019. We also conducted an assessment of our intangible assets with indefinite lives as of March 31, 2020, which indicated no impairment existed.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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