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Goodwill and Other Intangible Assets | 12 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill in each of the Company’s reportable segments were as follows (in millions):
|  | Year Ended September 30, 2024
|  | Building Solutions North America |  | Building Solutions EMEA/LA |  | Building Solutions Asia Pacific |  | Global Products |  | Total
Goodwill |  | $ | 10,040 |  |  | $ | 1,932 |  |  | $ | 1,179 |  |  | $ | 4,586 |  |  | 17,737 |
Accumulated impairment loss |  | (659) |  |  | (47) |  |  | — |  |  | (259) |  |  | (965) |
Balance at beginning of period |  | 9,381 |  |  | 1,885 |  |  | 1,179 |  |  | 4,327 |  |  | 16,772 |
Impairments |  | — |  |  | (230) |  |  | — |  |  | — |  |  | (230) |
Foreign currency translation and other (1) |  | 10 |  |  | 107 |  |  | 48 |  |  | 18 |  |  | 183 |
Balance at end of period |  | $ | 9,391 |  |  | $ | 1,762 |  |  | $ | 1,227 |  |  | $ | 4,345 |  |  | $ | 16,725 |
(1) Includes measurement period adjustments and the allocation of $21 million of goodwill from Global Products to the ADTi disposal group classified as held for sale in June 2024 and subsequently divested in July 2024. Refer to Note 2, "Acquisitions and Divestitures" of the notes to the consolidated financial statements for further information.
|  | Year Ended September 30, 2023 |
|  | Building Solutions North America |  | Building Solutions EMEA/LA |  | Building Solutions Asia Pacific |  | Global Products |  | Total |
Goodwill |  | $ | 9,630 |  |  | $ | 1,794 |  |  | $ | 1,116 |  |  | $ | 4,416 |  |  | 16,956 |  |
Accumulated impairment loss |  | (659) |  |  | (47) |  |  | — |  |  | (75) |  |  | (781) |  |
Balance at beginning of period |  | 8,971 |  |  | 1,747 |  |  | 1,116 |  |  | 4,341 |  |  | 16,175 |  |
Acquisitions |  | 399 |  |  | 13 |  |  | 55 |  |  | 119 |  |  | 586 |  |
Impairments |  | — |  |  | — |  |  | — |  |  | (184) |  |  | (184) |  |
Foreign currency translation and other |  | 11 |  |  | 125 |  |  | 8 |  |  | 51 |  |  | 195 |  |
Balance at end of period |  | $ | 9,381 |  |  | $ | 1,885 |  |  | $ | 1,179 |  |  | $ | 4,327 |  |  | $ | 16,772 |  |
Management completed its fiscal 2024 annual impairment test as of July 31, which included a qualitative assessment of all but one of its reporting units. The Company did not identify any qualitative factors that suggest that it is more likely than not that the fair value of its reporting units is less than their carrying amount, including goodwill, and as such, a quantitative impairment test was not necessary. The Company performed a quantitative goodwill impairment test of one reporting unit with $214 million of goodwill, and its fair value was in excess of its carrying value. However, for this reporting unit, a 200 basis point increase in the discount rate, or a 200 basis point decrease in the revenue growth rates, would cause the fair value to be less than the carrying value. While no impairment was recorded, it is possible that future changes in circumstances could result in a non-cash impairment charge. In the second quarter of fiscal 2024, the Company determined a triggering event had occurred for one of its reporting units in the Business Solutions EMEA/LA segment due to year-to-date results and projections for the remainder of fiscal 2024 being lower than the forecast used in the previous annual goodwill impairment test, and a quantitative test of goodwill for possible impairment was necessary. As a result of the goodwill impairment test, the Company recorded a non-cash impairment charge of $230 million within restructuring and impairment costs in the consolidated statements of income, which was determined by comparing the carrying amount of the reporting unit to its fair value. The Company used a discounted cash flow model to estimate the fair value of the reporting unit. The primary assumptions used in the model were management's internal projections of future cash flows, the weighted-average cost of capital and the long-term growth rate, which are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." In the second quarter of fiscal 2023, management completed an updated comprehensive review of the Silent-Aire reporting unit, which is included in the Global Products segment. Because actual results were lower than planned and the nearer term forecast was revised to reflect lower margins and earnings, the Company determined a triggering event had occurred and a quantitative test of goodwill for possible impairment was necessary. As a result of the goodwill impairment test, the Company recorded a non-cash impairment charge of $184 million within restructuring and impairment costs in the consolidated statements of income in fiscal 2023, which was determined by comparing the carrying amount of the reporting unit to its fair value. During its fiscal 2022 annual impairment test, the Company recorded a non-cash impairment charge of $75 million of Silent Aire goodwill within restructuring and impairment costs in the consolidated statements of income. The Company used a discounted cash flow model to estimate the fair value of the Silent-Aire reporting unit in both fiscal 2023 and 2022. The primary assumptions and inputs used in the model included management's internal projections of future cash flows, the weighted-average cost of capital and the long-term growth rate. The fair value measurement is classified as Level 3 within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement" due to the unobservable inputs used. The Silent-Aire reporting unit had no remaining goodwill balance as of September 30, 2024 and 2023. During 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. 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 fiscal 2022. The North America Retail reporting unit had no remaining goodwill balance as of September 30, 2024 and 2023. 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 fiscal 2024, 2023 or 2022. However, it is possible that future changes in circumstances would require the Company to record additional non-cash impairment charges. Other Intangible Assets The Company’s other intangible assets, primarily from business acquisitions, consisted of (in millions):
| September 30,
| 2024 |  | 2023
| Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Definite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |
Technology | $ | 1,592 |  |  | $ | (955) |  |  | $ | 637 |  |  | $ | 1,562 |  |  | $ | (795) |  |  | $ | 767 |
Customer relationships | 2,632 |  |  | (1,517) |  |  | 1,115 |  |  | 2,854 |  |  | (1,380) |  |  | 1,474 |
Miscellaneous | 886 |  |  | (480) |  |  | 406 |  |  | 831 |  |  | (409) |  |  | 422 |
| 5,110 |  |  | (2,952) |  |  | 2,158 |  |  | 5,247 |  |  | (2,584) |  |  | 2,663 |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |
Trademarks/tradenames | 1,972 |  |  | — |  |  | 1,972 |  |  | 2,109 |  |  | — |  |  | 2,109 |
Total intangible assets | $ | 7,082 |  |  | $ | (2,952) |  |  | $ | 4,130 |  |  | $ | 7,356 |  |  | $ | (2,584) |  |  | $ | 4,772 |
During the fourth quarter of fiscal 2024, the Company impaired $32 million and $13 million of miscellaneous intangible assets in the Global Products segment and Building Solutions North America segment, respectively. These non-cash charges were recorded within restructuring and impairment costs in the consolidated statement of income. During the fourth quarter of fiscal 2023, the Company impaired $18 million of miscellaneous intangible assets in the Global Products segment and $10 million of a trademark in the Building Solutions Asia Pacific segment. These non-cash charges were recorded within restructuring and impairment costs in the consolidated statements of income. There were no impairments of other indefinite-lived intangible assets in any of these years, other than as disclosed above. For all other remaining indefinite-lived intangible assets, the Company estimated fair values were greater than the carrying values, with the exception of two other registered trademarks in which the estimated fair values were consistent with their carrying values which totaled $335 million as of July 31, 2024. Amortization of other intangible assets included within continuing operations for the years ended September 30, 2024, 2023 and 2022 was $476 million, $426 million and $413 million, respectively. The following table summarizes estimated amortization of existing definite-lived intangible assets as of September 30, 2024 for each of the next five fiscal years (in millions):
2025 |  | $ | 453 |
2026 |  | 400
2027 |  | 365
2028 |  | 276
2029 |  | 183

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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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