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GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended
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Jun. 30, 2024
GOODWILL AND OTHER INTANGIBLE ASSETS |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS ​ Goodwill ​ Goodwill arises from the Company’s acquisitions and represents the excess of the fair value of the purchase consideration exchanged over the fair value of net assets acquired. The Company’s reporting units are its eight operating segments. The Company assesses goodwill for impairment on an annual basis during the second quarter. If circumstances change or events occur that demonstrate it is more likely than not that the carrying amount of a reporting unit exceeds its fair value, the Company completes an interim goodwill assessment of that reporting unit prior to the next annual assessment. If the results of an annual or interim goodwill assessment demonstrate the carrying amount of a reporting unit is greater than its fair value, the Company will recognize an impairment loss for the amount by which the reporting unit’s carrying amount exceeds its fair value, but not to exceed the carrying amount of goodwill assigned to that reporting unit. ​ During the second quarter of 2024, the Company completed its annual goodwill impairment assessment for its reporting units using discounted cash flow analyses that incorporated assumptions regarding future growth rates, terminal values and discount rates. The global surgical solutions business that is held for sale was assessed separately for impairment as a disposal group. The Company’s goodwill impairment assessments for 2024 indicated the estimated fair values of each of these eight reporting units and the disposal group exceeded the carrying amounts of the respective reporting unit by a significant margin. There has been no impairment of goodwill in any of the periods presented. ​ The changes in the carrying amount of goodwill for each of the Company's reportable segments during the second quarter ended June 30, 2024 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Global | ​ | Global | ​ | Global | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Global | ​ | Institutional | ​ | Healthcare & | ​ | Pest | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) |  | Industrial |  | & Specialty |  | Life Sciences | ​ | Elimination | ​ | Other |  | Total | ​ |
December 31, 2023 | ​ | ​ | $4,140.6 | ​ | ​ | $610.0 | ​ | ​ | $3,158.4 | ​ | ​ | $- | ​ | ​ | $239.2 | ​ | ​ | $8,148.2 | ​ | ​
Segment changes (a) | ​ | ​ | 102.9 | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 136.3 | ​ | ​ | (239.2) | ​ | ​ | - | ​ | ​
December 31, 2023 recast | ​ | ​ | 4,243.5 | ​ | ​ | 610.0 | ​ | ​ | 3,158.4 | ​ | ​ | 136.3 | ​ | ​ | - | ​ | ​ | 8,148.2 | ​ | ​
Current year business combinations | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 22.8 | ​ | ​ | - | ​ | ​ | 22.8 | ​ | ​
Prior year business combinations (b) | ​ | ​ | (0.3) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (0.3) | ​ | ​
Transferred to held for sale | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (305.0) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (305.0) | ​ | ​
Effect of foreign currency translation | ​ | ​ | (38.8) | ​ | ​ | (0.4) | ​ | ​ | (4.5) | ​ | ​ | (0.1) | ​ | ​ | - | ​ | ​ | (43.8) | ​ | ​
June 30, 2024 | ​ | ​ | $4,204.4 | ​ | ​ | $609.6 | ​ | ​ | $2,848.9 | ​ | ​ | $159.0 | ​ | ​ | $- | ​ | ​ | $7,821.9 | ​ | ​
​
(a) | Relates to reclassifications made to reportable segments in the current year. Effective January 1, 2024, the Company’s former Textile Care and Colloidal Technologies Group (“CTG”) operating segments are now part of the Water operating segment which continues to remain in the Global Industrial reportable segment. Additionally, the Pest Elimination operating segment, formerly aggregated with the Textile Care and CTG operating segments within Other, is now reported as the stand-alone Global Pest Elimination reportable segment. After these changes, the Company has eight operating segments aligned with eight reporting units. Refer to Note 16 for further information.
(b) | Represents purchase accounting adjustments associated with 2023 acquisitions.
​ Other Intangible Assets ​ The Nalco trade name is the Company’s only indefinite life intangible asset, which is tested for impairment on an annual basis during the second quarter. During the second quarter of 2024, the Company completed its annual impairment assessment of the Nalco trade name using the relief from royalty discounted cash flow method, which incorporates assumptions regarding future sales projections, royalty rates and discount rates. The Company’s Nalco trade name impairment assessment for 2024 indicated the estimated fair value of the Nalco trade name exceeded its $1.2 billion carrying amount by a significant margin. There has been no impairment of the Nalco trade name intangible since it was acquired. ​ The Company’s intangible assets subject to amortization include customer relationships, trademarks, patents and other technologies primarily acquired through business acquisitions. The fair value of intangible assets acquired in business acquisitions are estimated primarily using discounted cash flow valuation methods at the time of acquisition. Intangible assets are amortized on a straight-line basis over their estimated lives. Total amortization expense related to intangible assets during the second quarter of 2024 and 2023 was $75.1 million and $76.8 million, respectively, and during the first six months of 2024 and 2023 was $152.9 million and $152.4 million, respectively. Amortization expense related to intangible assets for the remaining six-month period of 2024 is expected to be approximately $151 million.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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