Goodwill and Other Intangible Assets (Notes)

6 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Effective October 1, 2021, the Company's marine businesses previously included in the Building Solutions Asia Pacific and Global Products reportable segments became part of the Building Solutions EMEA/LA reportable segment. Historical information has been re-cast to present the comparative periods on a consistent basis. This change was not material to the segment presentation or the allocation of goodwill.

The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the six-month period ended March 31, 2022 were as follows (in millions):


			Business Acquisitions		Business Divestitures		Impairments		Currency Translation and Other
	September 30,										March 31,
	2021										2022

Building Solutions North America	$	9,215	$	24	$	—	$	(235)	$	12	$	9,016
Building Solutions EMEA/LA	2,041		38		(82)		—		(54)		1,943
Building Solutions Asia Pacific	1,237		45		(16)		—		4		1,270
Global Products	5,842		16		—		—		(58)		5,800
Total	$	18,335	$	123	$	(98)	$	(235)	$	(96)	$	18,029

Business divestitures include $77 million and $16 million of goodwill within the Building Solutions EMEA/LA and Building Solutions Asia Pacific reportable segments, respectively, transferred to noncurrent assets held for sale on the consolidated statements of financial position related to plans to dispose of the Global Retail business.

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. In the second quarter of fiscal 2022, the Company concluded it had a triggering event requiring assessment of goodwill impairment for its North America Retail reporting unit in conjunction with classifying its Global Retail business as held for sale. Refer to Note 4, "Discontinued Operations & Assets and Liabilities Held for Sale," of the notes to the consolidated financial statements for further disclosure related to the Global Retail assets held for sale. As a result, the Company recorded a non-cash impairment charge of $235 million within restructuring and impairment costs in the consolidated statements of income in the second quarter of fiscal 2022. The North America Retail reporting unit has no remaining goodwill balance as of March 31, 2022. The Company used the market approach to estimate the fair value of the reporting unit based on the relative estimated sales proceeds for the planned disposal of the Global Retail business attributable to the North America Retail reporting unit. The inputs utilized in the analysis are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement."

There were no other triggering events requiring that an impairment assessment be conducted in the six months ended March 31, 2022. However, it is possible that future changes in circumstances would require the Company to record additional non-cash impairment charges.

At March 31, 2022, accumulated goodwill impairment charges totaled $706 million, of which $659 million related to the North America Retail reporting unit and $47 million related to the Building Solutions EMEA/LA reporting unit. At September 30, 2021, accumulated goodwill impairment charges totaled $471 million, of which $424 million related to the North America Retail reporting unit and $47 million related to the Building Solutions EMEA/LA reporting unit.

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


	March 31, 2022						September 30, 2021
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Definite-lived intangible assets
Technology	$	1,376	$	(621)	$	755	$	1,464	$	(629)	$	835
Customer relationships	2,853		(1,240)		1,613		3,097		(1,191)		1,906
Miscellaneous	703		(358)		345		750		(354)		396
	4,932		(2,219)		2,713		5,311		(2,174)		3,137
Indefinite-lived intangible assets
Trademarks/trade names	2,176		—		2,176		2,332		—		2,332
Miscellaneous	—		—		—		80		—		80
	2,176		—		2,176		2,412		—		2,412
Total intangible assets	$	7,108	$	(2,219)	$	4,889	$	7,723	$	(2,174)	$	5,549

Amortization of other intangible assets included within continuing operations for the three-month periods ended March 31, 2022 and 2021 was $106 million and $104 million, respectively. Amortization of other intangible assets included within continuing operations for the six month periods ended March 31, 2022 and 2021 was $224 million and $208 million, respectively.

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. There were no triggering events requiring that an impairment assessment be conducted in the six months ended March 31, 2022. However, it is possible that future changes in circumstances would require the Company to record additional non-cash impairment charges.