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Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

v3.21.2
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
 6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract] Ìý
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
NOTE 7 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
Goodwill
The following is a summary of Goodwill by segment:
(In Millions)
June 30,
2021		 December 31,
2020
Steelmaking $ 896Ìý $ 1,232Ìý
Other Businesses 174Ìý 174Ìý
Total goodwill $ 1,070Ìý $ 1,406Ìý
The decrease of $336 million in the balance of Goodwill in our Steelmaking segment as of JuneÌý30, 2021, compared to DecemberÌý31, 2020, is due to the change in estimated identified goodwill as a result of measurement period adjustments to the preliminary purchase price allocation for the acquisition of ArcelorMittal USA. Refer to NOTE 3 - ACQUISITIONS for further details.
Intangible Assets and Liabilities
The following is a summary of our intangible assets and liabilities:
(In Millions)
JuneÌý30, 2021
DecemberÌý31, 2020
Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount
Intangible assets1:
Customer relationships $ 77Ìý $ (6) $ 71Ìý $ 77Ìý $ (3) $ 74Ìý
Developed technology 60Ìý (5) 55Ìý 60Ìý (3) 57Ìý
Trade names and trademarks 11Ìý (1) 10Ìý 11Ìý (1) 10Ìý
Mining permits 72Ìý (25) 47Ìý 72Ìý (25) 47Ìý
Total intangible assets $ 220Ìý $ (37) $ 183Ìý $ 220Ìý $ (32) $ 188Ìý
Intangible liabilities2:
Above-market supply contracts $ (71) $ 10Ìý $ (61) $ (71) $ 7Ìý $ (64)
1 Intangible assets are classified as Other non-current assets. Amortization related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
2 Intangible liabilities are classified as Other non-current liabilities. Amortization of all intangible liabilities is recognized in Cost of goods sold.
Amortization expense related to intangible assets was $2 million and $5 million for the three and six months ended JuneÌý30, 2021, respectively, and $3Ìýmillion and $4Ìýmillion for the three and six months ended JuneÌý30, 2020, respectively. Estimated future amortization expense is $5 million for the remainder of 2021 and $10 million annually for the years 2022 through 2026.
Income from amortization related to the intangible liabilities was $2 million and $3 million for the three and six months ended JuneÌý30, 2021, respectively, and $1Ìýmillion and $3Ìýmillion for the three and six months ended JuneÌý30, 2020, respectively. Estimated future income from amortization is $4 million for the remainder of 2021 and $5 million annually for the years 2022 through 2026.