Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6 – Goodwill and Intangible Assets

On January 2, 2020, the Company completed the acquisition of substantially all of the assets of Careem Inc. (“Careem”) and certain of its subsidiaries. The acquisition was accounted for as a business combination, resulting in an increase of $2.5 billion in goodwill and $540 million in intangible assets. Refer to Note 16 – Business Combination for further information.

Goodwill

The following table presents the changes in the carrying value of goodwill, by segment, for the three months ended March 31, 2020 (in millions):



	Rides			Eats		Freight		Other Bets			ATG and Other Technology Programs		Total Goodwill
Balance as of December 31, 2019	$	25		$	13	$	—	$	100		$	29	$	167
Acquisitions (Note 16)	2,515			—		—		—			—		2,515
Goodwill impairment	—			—		—		(100		)	—		(100		)
Foreign currency translation adjustment	(16		)	—		—		—			—		(16		)
Balance as of March 31, 2020	$	2,524		$	13	$	—	$	—		$	29	$	2,566

Market, macroeconomic and business conditions resulting from the COVID-19 pandemic indicated that it was more likely than not that the carrying value of the Company’s New Mobility reporting unit within its Other Bets segment exceeded its fair value. Therefore, the Company assessed whether goodwill was impaired as of March 31, 2020 by comparing the fair value of the New Mobility reporting unit to its carrying value. Fair value was determined by referencing market valuation multiples implied by companies that have comparable businesses which is a Level 3 measurement. The carrying value of the Company’s New Mobility reporting unit exceeded its fair value, and as a result, a goodwill impairment charge of $100 million was recorded in general and administrative expenses in the condensed consolidated statement of operations, after consideration of impairments of long-lived and other assets of the reporting unit.

During the three months ended March 31, 2020, the Company recognized impairment charges to intangible assets, certain property and equipment and spare parts inventory in its New Mobility reporting unit. The impairment charges to intangible assets of $23 million, property and equipment of $47 million, and spare parts inventory of $23 million were recorded in general and administrative expenses in the condensed consolidated statement of operations.

In light of the impact of the COVID–19 pandemic on macroeconomic conditions and demand for Rides, the Company also considered whether it was more likely than not the fair value of its Rides reporting unit was below its carrying value. Based on an analysis of qualitative and quantitative factors, including market valuation multiples of public companies operating in the same business and considering the significant excess of the fair value attributable to the Rides reporting unit over its carrying value, the Company determined that the Rides goodwill was not impaired as of March 31, 2020.

Except as noted above, for the three months ended March 31, 2020, the Company concluded that there was no impairment to its other reporting units.

Intangible Assets

The components of intangible assets, net as of December 31, 2019 and March 31, 2020 were as follows (in millions, except years):



	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Remaining Useful Life - Years
December 31, 2019
Developed technology ⁽¹⁾	$	94	$	(35	)	$	59	3
Patents	16		(4		)	12		8
Other	3		(3		)	—		—
Intangible assets	$	113	$	(42	)	$	71



	Gross Carrying Value		Accumulated Amortization			Accumulated Impairment			Net Carrying Value		Weighted Average Remaining Useful Life - Years
March 31, 2020
Rider relationships ⁽¹⁾	$	268	$	(5	)	$	—		$	263	15
Captains network ⁽¹⁾	40		(10		)	—			30		1
Developed technology ^{(1), (2)}	204		(44		)	(23		)	137		4
Trade names ⁽¹⁾	120		(3		)	—			117		10
Patents	16		(5		)	—			11		8
Other	5		(3		)	—			2		—
Intangible assets	$	653	$	(70	)	$	(23	)	$	560

⁽¹⁾ Includes intangible assets acquired from Careem. Refer to Note 16 – Business Combination for further information.

⁽²⁾Developed technology intangible assets include in-process research and development (“IPR&D”), which is not subject to amortization, of $31 million and $31 million as of December 31, 2019 and March 31, 2020, respectively.

Amortization expense for intangible assets subject to amortization was $4 million and $28 million for the three months ended March 31, 2019 and 2020, respectively.

The estimated aggregate future amortization expense for intangible assets subject to amortization as of March 31, 2020 is summarized below (in millions):



	Estimated Future Amortization Expense
Year Ending December 31,
Remainder of 2020	$	76
2021	60
2022	59
2023	59
2024	31
Thereafter	242
Total	$	527