Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

v3.22.1
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
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)
March 31,
2022
December 31,
2021
Steelmaking $ 953  $ 942 
Other Businesses 174  174 
Total goodwill $ 1,127  $ 1,116 
The increase of $11 million in the balance of Goodwill in our Steelmaking segment as of March 31, 2022, compared to December 31, 2021, 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 FPT. 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)
March 31, 2022
December 31, 2021
Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount
Intangible assets1:
Customer relationships $ 90  $ (9) $ 81  $ 95  $ (8) $ 87 
Developed technology 60  (8) 52  60  (6) 54 
Trade names and trademarks 18  (3) 15  18  (2) 16 
Mining permits 72  (26) 46  72  (26) 46 
Supplier relationships 21  —  21  18  —  18 
Total intangible assets $ 261  $ (46) $ 215  $ 263  $ (42) $ 221 
Intangible liabilities2:
Above-market supply contracts $ (71) $ 15  $ (56) $ (71) $ 14  $ (57)
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 $4 million and $3 million for the three months ended March 31, 2022 and 2021, respectively. Estimated future amortization expense is $9 million for the remainder of 2022 and $13 million annually for the years 2023 through 2027.
Income from amortization related to the intangible liabilities for both the three months ended March 31, 2022 and 2021 was $1 million. Estimated future income from amortization is $4 million for the remainder of 2022 and $5 million annually for the years 2023 through 2027.