XML 29 R15.htm IDEA: XBRL DOCUMENT
v3.22.4

GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
--- | ---
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company tests goodwill and indefinite-lived intangible assets for impairment as of October 1st each year, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill The changes in the net carrying amount of goodwill by segment are as follows (in millions):
| Composites |  | Insulation |  | Roofing |  | Total
Gross carrying amount at December 31, 2021 | $ | 75 |  |  | $ | 1,481 |  |  | $ | 397 |  |  | $ | 1,953 |
Acquisitions (see Note 7) | 353 |  |  | 62 |  |  | — |  |  | 415 |
Foreign currency translation | (3) |  |  | (44) |  |  | (3) |  |  | (50) |
Gross carrying amount at December 31, 2022 | 425 |  |  | 1,499 |  |  | 394 |  |  | 2,318 |
Accumulated impairment losses at December 31, 2021 | — |  |  | (963) |  |  | — |  |  | (963) |
Foreign currency translation | — |  |  | 28 |  |  | — |  |  | 28 |
Accumulated impairment losses at December 31, 2022 | — |  |  | (935) |  |  | — |  |  | (935) |
Balance, net of impairment at December 31, 2022 | $ | 425 |  |  | $ | 564 |  |  | $ | 394 |  |  | $ | 1,383 |
| Composites |  | Insulation |  | Roofing |  | Total
Gross carrying amount at December 31, 2020 | $ | 57 |  |  | $ | 1,519 |  |  | $ | 400 |  |  | $ | 1,976 |
Acquisitions (see Note 7) | 16 |  |  | — |  |  | — |  |  | 16 |
Additions | 3 |  |  | — |  |  | — |  |  | 3 |
Foreign currency translation | (1) |  |  | (38) |  |  | (3) |  |  | (42) |
Gross carrying amount at December 31, 2021 | 75 |  |  | 1,481 |  |  | 397 |  |  | 1,953 |
Accumulated impairment losses at December 31, 2020 | — |  |  | (987) |  |  | — |  |  | (987) |
Foreign currency translation | — |  |  | 24 |  |  | — |  |  | 24 |
Accumulated impairment losses at December 31, 2021 | — |  |  | (963) |  |  | — |  |  | (963) |
Balance, net of impairment at December 31, 2021 | $ | 75 |  |  | $ | 518 |  |  | $ | 397 |  |  | $ | 990 |
The annual tests performed in the fourth quarter of 2022 and 2021 resulted in no impairment of goodwill. In the first quarter of 2020, the Company performed its ongoing assessment to consider whether events or circumstances had occurred that could more likely than not reduce the fair value of a reporting unit below its carrying value. The Company’s significant share price reduction during the onset of the COVID-19 pandemic was determined to be an indicator of impairment under ASC 350. The valuation limitation from the Company’s share price decline, the narrow cushion on the Insulation reporting unit and the high level of near-term macroeconomic uncertainty caused the Company to perform an interim goodwill impairment test as of March 31, 2020 over the Insulation reporting unit. As part of our quantitative testing process for goodwill of the Insulation reporting unit, we estimated fair values using a discounted cash flow analysis, a form of the income approach, from the perspective of a market participant. Significant assumptions used in the discounted cash flow approach are revenue growth rates and EBIT margins used in estimating discrete period cash flow forecasts of the reporting unit, the discount rate, and the long-term revenue growth rate and EBIT margins used in estimating the terminal business value. The terminal business value is determined by applying the long-term growth rate to the latest year for which a forecast exists. Based on the results of this interim testing over the Insulation reporting unit, the Company recorded a $944 million pre-tax non-cash impairment charge in the first quarter of 2020. This charge was recorded in Goodwill impairment charge on the Consolidated Statements of Earnings (Loss), and was included in the Corporate, Other and Eliminations reporting category. Consistent with the Company’s adoption of ASU 2017-04 in the first quarter of 2020, the impairment charge was equal to the excess of the Insulation reporting unit’s carrying value over its fair value. The reduction in fair value for the Insulation reporting unit, and corresponding impairment charge, was primarily driven by an increase in the discount rate arising from higher equity risk premiums that reflected significant uncertainty surrounding the effect from the COVID-19 pandemic and a decrease in the reporting unit's forecasted near-term cash flows. Other Intangible Assets Other intangible assets consist of the following (in millions):
| December 31, 2022 |  | December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Trademarks and trade names | $ | 1,001 |  |  | $ | — |  |  | $ | 1,001 |  |  | $ | 1,096 |  |  | $ | — |  |  | $ | 1,096 |
Customer relationships | 638 |  |  | (243) |  |  | 395 |  |  | 559 |  |  | (218) |  |  | 341 |
Technology | 330 |  |  | (187) |  |  | 143 |  |  | 298 |  |  | (168) |  |  | 130 |
Other (a) | 66 |  |  | (3) |  |  | 63 |  |  | 53 |  |  | (3) |  |  | 50 |
Total other intangible assets | $ | 2,035 |  |  | $ | (433) |  |  | $ | 1,602 |  |  | $ | 2,006 |  |  | $ | (389) |  |  | $ | 1,617 |
(a) Other primarily includes emissions rights. Indefinite-Lived Intangible Assets The annual tests performed in the fourth quarter of 2022 resulted in impairment of five of the Company's indefinite-lived intangible assets. Based on the results of this testing, the Company recorded pre-tax non-cash impairment charges totaling $96 million in the fourth quarter of 2022. These charges were recorded in Other expenses (income), net on the Consolidated Statements of Earnings (Loss), and were included in the Corporate, Other and Eliminations reporting category. Fair values used in testing for potential impairment of our trademarks are calculated using the relief-from-royalty method by applying an estimated market value royalty rate to the forecasted revenues of the businesses that utilize those assets. The assumed cash flows from this calculation are discounted at a rate based on a market participant discount rate. These charges included the following within the Insulation segment: a pre-tax impairment charge of $63 million for a trade name used by our European building and technical insulation business due to the effect of a higher discount rate, associated with rising interest rates, and general economic and geopolitical uncertainty within the European markets resulting in a slightly lower profitability outlook; a pre-tax impairment charge of $12 million related to a trademark used on global cellular glass insulation products due to the effect of a higher discount rate, associated with rising interest rates, and general economic and geopolitical uncertainty within the European markets; a pre-tax impairment charge of $8 million for a trademark used on mineral wool insulation products sold in the United States due to forecasted profitability of the product line. The remaining $13 million pre-tax impairment charge for trademarks used within the components business in our Roofing segment was due to the effect of a higher discount rate, associated with rising interest rates, and forecasted profitability of a specific product line. The following table presents the remaining carrying values of the impaired trade names and trademarks as of December 31, 2022 (in millions):
Trade names and trademarks | December 31, 2022
European building and technical insulation trade name | $ | 87 |
Global cellular glass insulation trademark | $ | 80 |
Components branded roofing trademark | $ | 42 |
Mineral wool insulation trademark | $ | — |
Components packaging trademark | $ | — |
The fair value of the remaining indefinite-lived intangible assets substantially exceeded the carrying value as of the date of our assessment. The annual test performed in the fourth quarter of 2021 and 2020 resulted in no impairment of indefinite-lived intangible assets. In the first quarter of 2020, we performed an interim impairment test of one indefinite-lived trademark and one trade name used by our Insulation segment, based on the macroeconomic conditions that precipitated the interim goodwill impairment test described above. Based on the results of this testing, the Company recorded pre-tax non-cash impairment charges totaling $43 million in the first quarter of 2020 related to one trademark and one trade name in the Insulation segment. These charges were recorded in Other expenses, net on the Consolidated Statements of Earnings (Loss), and were included in the Corporate, Other and Eliminations reporting category. A pre-tax impairment charge of $34 million for a trade name used by our European building and technical insulation business was recognized in the first quarter of 2020 due to the combined effect of lower expected sales following an immaterial divestiture in the first quarter of 2020, a decrease in the forecasted near-term cash flows, and a higher discount rate associated with the economic impact and uncertainty from the COVID-19 pandemic. A pre-tax impairment charge of $9 million related to a trademark used on global cellular glass insulation products was recorded in the first quarter of 2020 due to a slightly lower sales outlook and a similarly higher discount rate associated with the economic impact and uncertainty from the COVID-19 pandemic. Definite-Lived Intangible Assets The Company amortizes the cost of other intangible assets over their estimated useful lives which, individually, range up to 45 years. The Company's future cash flows are not materially impacted by its ability to extend or renew agreements related to its amortizable intangible assets. Amortization expense for intangible assets for the years ended December 31, 2022, 2021, and 2020 was $55 million, $49 million, and $48 million, respectively. The estimated amortization expense for intangible assets for the next five years is as follows (in millions):
Period | Amortization
2023 | $ | 67 |
2024 | $ | 64 |
2025 | $ | 58 |
2026 | $ | 42 |
2027 | $ | 34 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration