Goodwill and Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

Goodwill activity for the nine months ended September 30, 2021 is as follows (in millions):


Segments	Net Book Value at December 31, 2020		Foreign Exchange and Other		Gross Carrying Amount		Accumulated Impairment Charges		Net Book Value at September 30, 2021
Commercial Solutions	$	747	$	—	$	1,241	$	(494)	$	747
Home Appliances	—		—		569		(569)		—
Home Solutions	164		—		2,567		(2,403)		164
Learning and Development	2,642		(37)		3,451		(846)		2,605
Outdoor and Recreation	—		—		788		(788)		—
	$	3,553	$	(37)	$	8,616	$	(5,100)	$	3,516

During the third quarter of 2020, the Company divested a product line in its Learning and Development segment and allocated $3 million of reporting unit goodwill to the calculation of loss on disposal of business. See Footnote 1 for further information.

During the first quarter of 2020, the Company concluded that a triggering event had occurred for all of its reporting units as a result of the COVID-19 global pandemic. Pursuant to the authoritative literature, the Company performed an impairment test and determined that its goodwill associated with its Home Appliances and Food reporting units were impaired. During the nine months ended September 30, 2020, the Company recorded an aggregate non-cash charge of $212 million to reflect the impairments of goodwill as the reporting unit carrying values exceeded their fair values. See Footnote 1 for further information.

Other intangible assets, net, are comprised of the following at the dates indicated (in millions):


	September 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Trade names — indefinite life	$	2,296	$	—	$	2,296	$	2,331	$	—	$	2,331
Trade names — other	154		(63)		91		157		(55)		102
Capitalized software	648		(512)		136		625		(486)		139
Patents and intellectual property	35		(26)		9		67		(52)		15
Customer relationships and distributor channels	1,237		(308)		929		1,259		(282)		977

	$	4,370	$	(909)	$	3,461	$	4,439	$	(875)	$	3,564

Amortization expense for intangible assets for the three months ended September 30, 2021 and 2020 were $28 million and $39 million, respectively and $91 million and $121 million for the nine months ended September 30, 2021 and 2020, respectively.

During the third quarter of 2020, the Company concluded that a triggering event had occurred for an indefinite-lived intangible asset in the Learning and Development segment as a result of a product line divestiture. Pursuant to the authoritative literature, the Company performed an impairment test and determined that the indefinite-lived asset was impaired, as its carrying value exceeded its fair value. During the three and nine months ended September 30, 2020, the Company recorded a non-cash charge of $2 million to reflect the impairment of this indefinite-lived intangible asset. See Footnote 1 for further information.

As a result of the impairment testing performed in connection with the COVID-19 pandemic triggering event during the first quarter of 2020, the Company determined that certain of its indefinite-lived intangible assets in all of its operating segments were impaired. During the nine months ended September 30, 2020, the Company recorded impairment charges of $1.3 billion to reflect impairment of these indefinite-lived trade names because their carrying values exceeded their fair values.

The impairment charges for the three and nine months ended September 30, 2020 were allocated to the Company’s reporting segments as follows (in millions):


	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Impairment of indefinite-lived intangibles assets:
Commercial Solutions	$	—	$	320
Home Appliances	—		87
Home Solutions	—		290
Learning and Development	2		80
Outdoor and Recreation	—		482
	$	2	$	1,259

The Company believes the circumstances and global disruption caused by COVID-19 will continue to affect its businesses, operating results, cash flows and financial condition and that the scope and duration of the pandemic is highly uncertain. In addition, some of the other inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates, industry growth, credit ratings and foreign exchange rates. Given the uncertainty of these factors, as well as the inherent difficulty in predicting the severity and duration of the COVID-19 global pandemic and associated recovery and the uncertainties regarding the potential financial impact on the Company's business and the overall economy as discussed further in Footnote 1, there can be no assurance that the Company's estimates and assumptions will prove to be accurate predictions of the future.