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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 11. Goodwill and Intangible Assets The following table presents the net carrying amount of goodwill allocated by segment, and changes during 2020:
(In millions) |  | Balance at December 31, 2019 |  |  | Acquisitions |  |  | Divestitures |  |  | Impairment |  |  | Translation |  |  | Balance at December 31, 2020 |
Americas |  | $ | 91 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 91 |
Europe, Middle East and Africa |  |  | 411 |  |  |  | 10 |  |  |  | — |  |  |  | (182 | ) |  |  | 11 |  |  |  | 250 |
Asia Pacific |  |  | 63 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 67 |
|  | $ | 565 |  |  | $ | 10 |  |  | $ | — |  |  | $ | (182 | ) |  | $ | 15 |  |  | $ | 408 |
The following table presents the net carrying amount of goodwill allocated by segment, and changes during 2019:
(In millions) |  | Balance at December 31, 2018 |  |  | Acquisitions |  |  | Divestitures |  |  | Impairment |  |  | Translation |  |  | Balance at December 31, 2019 |
Americas |  | $ | 91 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 91 |
Europe, Middle East and Africa |  |  | 415 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | (6 | ) |  |  | 411 |
Asia Pacific |  |  | 63 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | 63 |
|  | $ | 569 |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | (7 | ) |  | $ | 565 |
The following table presents information about intangible assets:
|  | 2020 |  |  | 2019 |
(In millions) |  | Gross Carrying Amount(1) |  |  | Accumulated Amortization(1) |  |  | Net Carrying Amount |  |  | Gross Carrying Amount(1) |  |  | Accumulated Amortization(1) |  |  | Net Carrying Amount |
Intangible assets with indefinite lives |  | $ | 125 |  |  | $ | (6 | ) |  | $ | 119 |  |  | $ | 124 |  |  | $ | (6 | ) |  | $ | 118 |
Trademarks and patents |  |  | 23 |  |  |  | (19 | ) |  |  | 4 |  |  |  | 24 |  |  |  | (19 | ) |  |  | 5 |
Other intangible assets |  |  | 25 |  |  |  | (13 | ) |  |  | 12 |  |  |  | 25 |  |  |  | (11 | ) |  |  | 14 |
|  | $ | 173 |  |  | $ | (38 | ) |  | $ | 135 |  |  | $ | 173 |  |  | $ | (36 | ) |  | $ | 137 |
(1) | Includes impact of foreign currency translation.
Intangible assets are primarily comprised of the rights to use the Dunlop brand name and related trademarks and certain other brand names and trademarks. Amortization expense for intangible assets totaled $2 million in 2020, 2019 and 2018. We estimate that annual amortization expense related to intangible assets will be $2 million in 2021, and $1 million in 2022 through 2025. The weighted average remaining amortization period is approximately 20 years. 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. Based on the results of this interim analysis, we recorded a non-cash impairment charge of $182 million related to our EMEA reporting unit in the first quarter of 2020. The most critical assumptions used in the calculation of the estimated fair value of our reporting units were the timing of the recovery in sales from the COVID-19 pandemic, the projected long-term operating margin and the discount rate. Since the date of our 2019 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 macroeconomic environment. Also, we gave consideration to the expected near-term negative cash flow impact of the COVID-19 pandemic and subsequent recovery, based on our forecasts at that time, as well as a decrease in our market capitalization. Since the first quarter of 2020, our forecasts as well as our market capitalization have both improved and we have concluded that there were no additional triggering events during the remaining nine months of 2020. Likewise, our 2020 annual impairment analysis as of October 31, 2020 indicated no impairment of goodwill or intangible assets with indefinite lives. Our annual impairment analyses for 2019 and 2018 also indicated no impairment of goodwill or intangible assets with indefinite lives. Our quantitative goodwill analysis as of October 31, 2020 concluded that the fair values substantially exceeded the carrying amounts for each reporting unit tested. There were no events or circumstances that indicated the quantitative impairment tests should be re-performed for goodwill or for intangible assets with indefinite lives for any reporting unit at December 31, 2020. Nonetheless, if we make future adverse revisions to our significant assumptions, including as a result of business performance or market conditions, or if our market capitalization declines and if such 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 impairment charge in a future period.

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