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Goodwill and Other Intangible Assets, Net | 9 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill activity for the nine months ended September 30, 2023 is as follows (in millions):
Segments | Net Book Value at December 31, 2022 |  |  | Impairment Charges |  | Foreign Exchange |  | Gross Carrying Amount |  | Accumulated Impairment Charges |  | Net Book Value at September 30, 2023
Home and Commercial Solutions | $ | 747 |  |  |  | $ | — |  |  | $ | — |  |  | $ | 4,052 |  |  | $ | (3,305) |  |  | $ | 747 |
Learning and Development | 2,551 |  |  |  | (241) |  |  | (8) |  |  | 3,389 |  |  | (1,087) |  |  | 2,302 |
Outdoor and Recreation | — |  |  |  | — |  |  | — |  |  | 788 |  |  | (788) |  |  | — |
| $ | 3,298 |  |  |  | $ | (241) |  |  | $ | (8) |  |  | $ | 8,229 |  |  | $ | (5,180) |  |  | $ | 3,049 |
During the third quarter of 2023, the Company concluded that a triggering event had occurred for the goodwill associated with the Baby reporting unit in the Learning and Development segment as a result of a downward revision of forecasted cash flows due to lower volume and profitability expectations, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the Baby reporting unit goodwill was impaired. During the third quarter of 2023, the Company recorded a non-cash impairment charge of $241 million as the carrying value of the reporting unit exceeded its fair value. During the third quarter of 2022, the Company concluded that a triggering event had occurred for the Home Fragrance reporting unit in the Home and Commercial Solutions segment, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory, and rising interest rates. The decline in global demand is driven primarily by inflationary pressures which are impacting the discretionary spending behavior of consumers. The Company performed a quantitative impairment test and determined that the Home Fragrance reporting unit goodwill was impaired. During the third quarter of 2022, the Company recorded a non-cash impairment charge of $108 million, as the carrying value of the reporting unit exceeded its fair value. Other intangible assets, net, are comprised of the following (in millions):
| September 30, 2023 |  | December 31, 2022 |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  |
Tradenames — indefinite life (1) | $ | 1,581 |  |  | $ | — |  |  | $ | 1,581 |  |  | $ | 1,689 |  |  | $ | — |  |  | $ | 1,689 |  |  |
Tradenames — other (1) | 230 |  |  | (97) |  |  | 133 |  |  | 160 |  |  | (79) |  |  | 81 |  |  |
Capitalized software | 619 |  |  | (504) |  |  | 115 |  |  | 602 |  |  | (481) |  |  | 121 |  |  |
Patents and intellectual property | 22 |  |  | (18) |  |  | 4 |  |  | 22 |  |  | (17) |  |  | 5 |  |  |
Customer relationships and distributor channels | 1,073 |  |  | (356) |  |  | 717 |  |  | 1,072 |  |  | (319) |  |  | 753 |  |  |
| $ | 3,525 |  |  | $ | (975) |  |  | $ | 2,550 |  |  | $ | 3,545 |  |  | $ | (896) |  |  | $ | 2,649 |  |  |
(1)In connection with the operating model changes associated with Project Phoenix, the Company determined that six tradenames with aggregate carrying values of $70 million no longer met indefinite-lived criteria and were reclassified during the first quarter as finite-lived tradenames, with useful lives ranging from five to ten years. Amortization expense for intangible assets was $28 million and $25 million for the three months ended September 30, 2023 and 2022, respectively and $82 million and $76 million for the nine months ended September 30, 2023 and 2022, respectively. During the third quarter of 2023, the Company concluded that a triggering event had occurred for an indefinite-lived tradename in the Outdoor and Recreation segment, as a result of a downward revision of forecasted cash flows due to market conditions, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Outdoor and Recreation segment was impaired. During the third quarter of 2023, the Company recorded a non-cash impairment charge of $22 million for the indefinite-lived tradename in the Outdoor and Recreation segment, as the carrying value of the tradename exceeded its fair value. During the second quarter of 2023, the Company concluded that a triggering event had occurred for indefinite-lived tradename in the Home Fragrance reporting unit in the Home and Commercial Solutions segment as a result of a downward revision of forecasted cash flows due to softening global demand, primarily caused by continued inflationary pressure that is impacting discretionary spending behavior of consumers, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Home and Commercial Solutions segment was impaired. During the second quarter of 2023, the Company recorded a non-cash impairment charge of $8 million, as the carrying value of the tradename exceeded its fair value. During the third quarter of 2022, the Company concluded that a triggering event had occurred for indefinite-lived tradenames in the Kitchen and Home Fragrance reporting units in the Home and Commercial Solutions segment, as a result of a downward revision of forecasted cash flows due to softening global demand, as retailers significantly pulled back on orders in an effort to rebalance inventory and rising interest rates. The decline in global demand was driven primarily by inflationary pressures which impacted the discretionary spending behavior of consumers. The Company also concluded that a triggering event had occurred for two indefinite-lived tradenames in the Baby reporting unit, in the Learning and Development segment, as a result of rising interest rates and inflationary pressures. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Kitchen reporting unit and two indefinite-lived tradenames in the Baby reporting unit were impaired. During the third quarter of 2022, the Company recorded an aggregate non-cash impairment charge of $40 million, as the carrying values of these tradenames exceeded their fair values.

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