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Goodwill and Long-Lived Assets | 6 Months Ended
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Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND LONG-LIVED ASSETS | 4. GOODWILL AND LONG-LIVED ASSETS Hospitality Goodwill Assessment In addition to our annual goodwill impairment test performed in the fourth quarter, we perform interim impairment tests for long-lived and intangible assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amount of the asset (group) may not be recoverable. Late in the quarter ended March 31, 2020, there was significant market volatility driven by the COVID-19 pandemic that drove uncertainty around our full year revenue and operating income expectations. As a result, we withdrew our full year outlook for 2020 on March 31, 2020, which was previously provided during our fourth quarter 2019 earnings conference call on February 11, 2020. Given the rapidly changing environment, we considered if there was an indication that the carrying value of net assets were in excess of the fair value for each of our reporting units. This consideration included the expected impacts to the current year cash flows, and the potential impacts to future cash flows, as well as the excess of the fair value over the carrying value from the prior year annual assessment. As a result, we determined there was an indication that the carrying value of the net assets assigned to the Hospitality reporting unit may not be recoverable. The fair value of the Hospitality reporting unit was estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of discounted cash flow (DCF) analysis. A number of significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including revenue growth, operating income margin and discount rate. The market approach is performed using the Guideline Public Companies (GPC) method, which is based on earnings multiple data of peer companies. For the Hospitality reporting unit, the Company expects the COVID-19 pandemic to have a significant impact to our customers in the table service market, travel and entertainment market and small and medium business market in the near term. The Company expects the long term growth strategy to remain intact with previous growth expectations returning in 2021. Based on these assumptions, the Company determined the fair value of the Hospitality segment continues to be greater than the carrying value and therefore, no impairment existed as of March 31, 2020. Additionally, as of June 30, 2020, the Company determined there was no indication the carrying value of the net assets assigned to the Hospitality segment may not be recoverable. However, if the actual results or the anticipated timing of the recovery from the COVID-19 pandemic differ from our expectations for the Hospitality, or any, reporting unit, there is a possibility we would have to perform another interim impairment test in 2020, which could lead to an impairment of goodwill or other assets. Goodwill by Segment The carrying amounts of goodwill by segment as of June 30, 2020 and December 31, 2019 are included in the table below. Foreign currency fluctuations are included within other adjustments.
| December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  | June 30, 2020 |  |  |  |
In millions | Goodwill |  | Accumulated Impairment Losses |  | Total |  | Additions |  | Impairment |  | Other |  | Goodwill |  | Accumulated Impairment Losses |  | Total
Banking | $ | 1,774 |  |  | $ | (101) |  |  | $ | 1,673 |  |  | $ | — |  |  | $ | — |  |  | $ | (6) |  |  | $ | 1,768 |  |  | $ | (101) |  |  | $ | 1,667 |
Retail | 638 |  |  | (34) |  |  | 604 |  |  | — |  |  | — |  |  | (4) |  |  | 634 |  |  | (34) |  |  | 600 |
Hospitality | 402 |  |  | (23) |  |  | 379 |  |  | 3 |  |  | — |  |  | (2) |  |  | 403 |  |  | (23) |  |  | 380 |
Other | 187 |  |  | (11) |  |  | 176 |  |  | — |  |  | — |  |  | — |  |  | 187 |  |  | (11) |  |  | 176 |
Total goodwill | $ | 3,001 |  |  | $ | (169) |  |  | $ | 2,832 |  |  | $ | 3 |  |  | $ | — |  |  | $ | (12) |  |  | $ | 2,992 |  |  | $ | (169) |  |  | $ | 2,823 |
Identifiable Intangible Assets NCR's purchased intangible assets, reported in intangibles, net in the Condensed Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below.
| Amortization Period (in Years) |  | June 30, 2020 |  |  |  | December 31, 2019 |  |
In millions |  |  | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Identifiable intangible assets |  |  |  |  |  |  |  |  |
Reseller & customer relationships | 1 - 20 |  | $ | 737 |  |  | $ | (297) |  |  | $ | 735 |  |  | $ | (270) |
Intellectual property | 2 - 8 |  | 524 |  |  | (407) |  |  | 529 |  |  | (397) |
Customer contracts | 8 |  | 89 |  |  | (89) |  |  | 89 |  |  | (89) |
Tradenames | 1 - 10 |  | 77 |  |  | (72) |  |  | 78 |  |  | (68) |
Total identifiable intangible assets |  |  | $ | 1,427 |  |  | $ | (865) |  |  | $ | 1,431 |  |  | $ | (824) |
The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:
In millions | Three months ended June 30, 2020 |  | Six months ended June 30, 2020 |  | Remainder of 2020 (estimated)
Amortization expense | $ | 19 |  |  | $ | 41 |  |  | $ | 40 |
|  | For the years ended December 31 (estimated) |  |  |  |  |  |  |  |
In millions |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025
Amortization expense |  | $ | 73 |  |  | $ | 68 |  |  | $ | 66 |  |  | $ | 59 |  |  | $ | 51 |

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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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