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Goodwill and Other Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill In the first quarter of 2021, in connection to the Merger, the Company reorganized its reporting structure. In connection with this reorganization, goodwill was reassigned among reporting units using a relative fair value approach based on the fair value of the elements transferred and the fair value of the elements remaining within the original reporting units. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. In connection with the reorganization, $985 million of goodwill previously included in the legacy Taste segment, now the Nourish segment, was moved to the Scent and Health & Biosciences segments amounting to $257 million and $728 million, respectively. Movements in goodwill attributable to each reportable segment during the years ended December 31, 2021 and 2022 were as follows:
(DOLLARS IN MILLIONS) | Nourish |  | Health & Biosciences |  | Scent |  | Pharma Solutions |  | Total
Balance at December 31, 2020 | $ | 4,859 |  |  | $ | — |  |  | $ | 734 |  |  | $ | — |  |  | $ | 5,593 |
Acquisitions(1) | 2,900 |  |  | 6,712 |  |  | 876 |  |  | 1,329 |  |  | 11,817 |
Transferred to assets held for sale(2) | — |  |  | (536) |  |  | — |  |  | — |  |  | (536) |
Reduction from business divestiture | (27) |  |  | — |  |  | — |  |  | — |  |  | (27) |
Foreign exchange | (192) |  |  | (155) |  |  | (39) |  |  | (47) |  |  | (433) |
Reallocation | (985) |  |  | 728 |  |  | 257 |  |  | — |  |  | — |
Balance at December 31, 2021 | 6,555 |  |  | 6,749 |  |  | 1,828 |  |  | 1,282 |  |  | 16,414 |
Acquisitions(3) | — |  |  | 45 |  |  | — |  |  | — |  |  | 45 |
Impairment | — |  |  | (2,250) |  |  | — |  |  | — |  |  | (2,250) |
Transferred to assets held for sale(4) | (306) |  |  | — |  |  | (42) |  |  | — |  |  | (348) |
Foreign exchange | (199) |  |  | (223) |  |  | (41) |  |  | (43) |  |  | (506) |
Balance at December 31, 2022 | $ | 6,050 |  |  | $ | 4,321 |  |  | $ | 1,745 |  |  | $ | 1,239 |  |  | $ | 13,355 |
_______________________ (1)Acquisitions relate to the Merger with N&B. See Note 3 for additional information. (2)Transferred to assets held for sale relate to the Microbial Control business unit that was classified as “held for sale” as of December 31, 2021. (3)Acquisitions relate to the acquisition of Health Wright. See Note 3 for additional information. (4)Transferred to assets held for sale relate to the portion of the Savory Solutions business and Flavor Specialty Ingredients business that were classified as “held for sale” as of December 31, 2022. See Note 21 for additional information. Goodwill Impairment Test For the annual impairment test as of November 30, 2022, the Company elected to bypass the qualitative assessment for all reporting units, Step 0 of the guidance in ASC Topic 350, Intangibles – Goodwill and Other, which allows for the assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. For all six reporting units, the Company performed a Step 1 test. The Company assessed the fair value of the reporting units using an income approach. Under the income approach, the Company determined the fair value by using a discounted cash flow method at a rate of return that reflects the relative risk of the projected future cash flows of each reporting unit, as well as a terminal value. The Company used the most current actual and forecasted operating data available. Key estimates and assumptions used in these valuations include revenue growth rates, gross margins, EBITDA margins, terminal growth rates and discount rates. In performing the quantitative impairment test, the Company determined that the fair value of the six reporting units exceeded their carrying values and determined that there was no further impairment of goodwill at any of the Company’s six reporting units as of November 30, 2022. Based on the quantitative impairment test performed, the Company determined that all reporting units except the Health & Biosciences reporting unit had excess fair value over carrying value of more than 25%. As of November 30, 2022, the Health & Biosciences reporting unit had excess fair value over carrying value of approximately 3% and goodwill of approximately $4.321 billion. While management believes that the assumptions used in the impairment test were reasonable, changes in key assumptions, including lower revenue growth, operating margin, terminal growth rates or increase in discount rates could result in a future impairment. If current long-term projections for these reporting units are not realized or materially decrease, the Company may be required to write-off all or a portion of the goodwill. Such charge could have a material effect on the Consolidated Statements of Operations and Balance Sheets. For the third quarter of 2022, the Company determined that goodwill impairment triggering events occurred for its Nourish, Health & Biosciences and Pharma Solutions reporting units, which required it to complete an interim impairment assessment. The primary indicators that were deemed to be triggering events in the quarter for the reporting units were declines in the Company’s projections across various reporting units and ongoing adverse macroeconomic impacts such as inflation, increases in interest rates and unfavorable effects from exchange rates. As a result of the triggering events, the Company assessed the fair value of the reporting units using the income approach. In performing the quantitative impairment test, the Company determined that the fair value of the Nourish and Pharma Solutions reporting units exceeded their carrying value, and determined that there was no impairment of goodwill relating to these reporting units. The Company determined that the carrying value of the Health & Biosciences reporting unit exceeded its fair value and recorded a goodwill impairment charge of $2.250 billion in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the year ended December 31, 2022. Other Intangible Assets Other intangible assets, net consisted of the following amounts:
| December 31,
(DOLLARS IN MILLIONS) | 2022 |  | 2021
Asset Type |  |  |
Customer relationships | $ | 8,318 |  |  | $ | 8,935 |
Technological know-how | 2,339 |  |  | 2,494 |
Trade names & patents | 358 |  |  | 411 |
Other | 47 |  |  | 50 |
Total carrying value | 11,062 |  |  | 11,890 |
Accumulated Amortization |  |  |
Customer relationships | (1,252) |  |  | (887) |
Technological know-how | (589) |  |  | (388) |
Trade names & patents | (97) |  |  | (68) |
Other | (42) |  |  | (41) |
Total accumulated amortization | (1,980) |  |  | (1,384) |
Other intangible assets, net | $ | 9,082 |  |  | $ | 10,506 |
Impairment of Intangible Assets As discussed in Note 1, for the year ended December 31, 2022, an impairment charge of approximately $92 million was recorded in connection with intangible assets, primarily customer relationships and technological know-how, of an asset group that operates primarily in Russia, which was included within accumulated amortization. Amortization Amortization expense was $727 million for the year ended December 31, 2022, $732 million for the year ended December 31, 2021 and $193 million for the year ended December 31, 2020. Amortization expense for the next five years and thereafter, based on valuations and determinations of useful lives, is expected to be as follows:
| December 31,
(DOLLARS IN MILLIONS) | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027
Estimated future intangible amortization expense | $ | 703 |  |  | $ | 702 |  |  | $ | 699 |  |  | $ | 697 |  |  | $ | 598 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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