Goodwill and Other Intangible Assets (Notes)

6 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the six month period ended March 31, 2020 were as follows (in millions):



			Business Acquisitions		Currency Translation and Other
	September 30,							March 31,
	2019							2020

Building Solutions North America	$	9,588	$	—	$	(45	)	$	9,543
Building Solutions EMEA/LA	1,849		20		(15		)	1,854
Building Solutions Asia Pacific	1,194		—		(23		)	1,171
Global Products	5,547		19		(62		)	5,504
Total	$	18,178	$	39	$	(145	)	$	18,072

At September 30, 2019, accumulated goodwill impairment charges included $47 million related to the Building Solutions EMEA/LA - Latin America reporting unit.

The Company reviews goodwill for impairment during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. The Company considered the deterioration in general economic and market conditions due to the COVID-19 pandemic and its impact on each of the Company’s reporting units’ performance. Based on the Company’s assessment of its market capitalization, forecasts and the amount of excess of fair value over the carrying value of the reporting units in the fiscal 2019 annual test, the Company concluded a triggering event did not occur during the quarter ended March 31, 2020. The Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macro-economic conditions. It is possible that future changes in such circumstances, including a more prolonged and/or severe COVID-19 pandemic, or future changes in the variables associated with the judgments, assumptions and estimates used in assessing the fair value of the reporting unit, would require the Company to record a non-cash impairment charge.

The Company’s other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of (in millions):



	March 31, 2020							September 30, 2019
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets
Technology	$	1,306	$	(427	)	$	879	$	1,307	$	(370	)	$	937
Customer relationships	2,704		(854		)	1,850		2,722		(759		)	1,963
Miscellaneous	618		(240		)	378		584		(224		)	360
Total definite-lived intangible assets	4,628		(1,521		)	3,107		4,613		(1,353		)	3,260
Indefinite-lived intangible assets
Trademarks/trade names	2,205		—			2,205		2,282		—			2,282
Miscellaneous	79		—			79		90		—			90
	2,284		—			2,284		2,372		—			2,372
Total intangible assets	$	6,912	$	(1,521	)	$	5,391	$	6,985	$	(1,353	)	$	5,632

The Company reviews indefinite-lived intangible assets for impairment during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. Indefinite-lived intangible assets primarily consist of trademarks and tradenames and are tested for impairment using a relief-from-royalty method. During the second quarter of fiscal 2020, the Company determined that it had a triggering event requiring assessment of impairment for certain of its indefinite-lived intangible assets due to declines in revenue directly attributable to the COVID-19 pandemic. As a result, the Company recorded an impairment charge of $62 million related primarily to the Company's retail business indefinite-lived intangible assets within restructuring and impairment costs in the consolidated statements of income in the second quarter of fiscal 2020. The Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value, including long-term revenue growth projections, discount rates and general industry, market and macro-economic conditions. It is possible that future changes in such circumstances, including a more prolonged and/or severe COVID-19 pandemic, or future changes in the variables associated with the judgments, assumptions and estimates used in assessing the fair value of the indefinite-lived intangible assets, would require the Company to record an additional non-cash impairment charge.

Amortization of other intangible assets included within continuing operations for the three month periods ended March 31, 2020 and 2019 was $97 million and $98 million, respectively. Amortization of other intangible assets included within continuing operations for the six month periods ended March 31, 2020 and 2019 was $193 million and $195 million, respectively. Excluding the impact of any future acquisitions, the Company anticipates amortization for fiscal 2021, 2022, 2023, 2024 and 2025 will be approximately $392 million, $390 million, $382 million, $363 million and $346 million per year, respectively.