Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The net carrying value of Goodwill as of December 31, 2021 and 2020 by segment was as follows:


	2021		2020
Oral, Personal and Home Care
North America	$	912	$	912
Latin America	159		171
Europe	1,902		2,415
Asia Pacific	182		190
Africa/Eurasia	114		121
Total Oral, Personal and Home Care	3,269		3,809
Pet Nutrition	15		15
Total Goodwill	$	3,284	$	3,824

The change in the amount of Goodwill during 2021 is due to the goodwill impairment charge related to the Filorga reporting unit as more fully described below, and foreign currency translation.

Other intangible assets as of December 31, 2021 and 2020 were comprised of the following:


	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Trademarks - finite life	$	891	$	(445)	$	446	$	902	$	(422)	$	480
Other finite life intangible assets	744		(289)		455		786		(237)		549
Indefinite life intangible assets	1,561		—		1,561		1,865		—		1,865
Total Other intangible assets	$	3,196	$	(734)	$	2,462	$	3,553	$	(659)	$	2,894

The change in the net carrying amounts of Other intangible assets during 2021 was primarily due to the impact of impairment charge related to the Filorga indefinite-lived trademark as more fully described below, foreign currency translation and amortization expense of $89. Annual estimated amortization expense for each of the next five years is expected to be approximately $77.

The Company made revisions to the internal forecasts relating to its Filorga reporting unit during the fourth quarter of 2021 due primarily to the impact of the COVID-19 pandemic on the Filorga skin health business as a result of government restrictions and reduced consumer mobility, which negatively impacted consumption in the duty-free, travel retail and pharmacy channels. The Company concluded that the changes in circumstances in this reporting unit triggered the need for an interim impairment review of its indefinite-lived trademark and goodwill and, accordingly, performed an interim impairment test for the trademark as of December 31, 2021. The Company concluded that the carrying value of the trademark exceeded its estimated fair value, and recorded an impairment charge of $204, reducing the carrying value to approximately $588. After adjusting the carrying value of the trademark, the Company completed a quantitative impairment test for goodwill and recorded a goodwill impairment charge of $367 in the Filorga reporting unit, reducing the carrying value of goodwill to approximately $577. The goodwill and trademark impairment charges are presented as a separate line item in the Consolidated Statements of Income.

The Company used the income approach to determine the fair value of the Filorga reporting unit and indefinite-lived trademark that required significant judgments and estimates by management regarding several key inputs, including future cash flows consistent with management’s strategic plans, sales growth rates and the selection of royalty rate and a discount rate, among others. Estimating sales growth rates requires significant judgment by management in areas such as future economic conditions, category and industry growth rates, product pricing, consumer tastes and preferences and future expansion expectations.