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Goodwill and Other Intangible Assets, Net | 6 Months Ended
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Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill activity for the six months ended June 30, 2024 is as follows (in millions):
|  |  |  |  |  |  |  | June 30, 2024
Segments | Net Book Value at December 31, 2023 |  |  |  |  | Foreign Exchange |  | Gross Carrying Amount |  | Accumulated Impairment Charges |  | Net Book Value
Home and Commercial Solutions | $ | 747 |  |  |  |  |  | $ | — |  |  | $ | 4,052 |  |  | $ | (3,305) |  |  | $ | 747 |
Learning and Development | 2,324 |  |  |  |  |  | (16) |  |  | 3,395 |  |  | (1,087) |  |  | 2,308 |
Outdoor and Recreation | — |  |  |  |  |  | — |  |  | 788 |  |  | (788) |  |  | — |
| $ | 3,071 |  |  |  |  |  | $ | (16) |  |  | $ | 8,235 |  |  | $ | (5,180) |  |  | $ | 3,055 |
Other intangible assets, net, are comprised of the following (in millions):
| June 30, 2024 |  | December 31, 2023 |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  |
Tradenames — indefinite life (1) | $ | 1,199 |  |  | $ | — |  |  | $ | 1,199 |  |  | $ | 1,535 |  |  | $ | — |  |  | $ | 1,535 |  |  |
Tradenames — other (1) | 549 |  |  | (126) |  |  | 423 |  |  | 232 |  |  | (105) |  |  | 127 |  |  |
Capitalized software | 639 |  |  | (528) |  |  | 111 |  |  | 628 |  |  | (512) |  |  | 116 |  |  |
Patents and intellectual property | 22 |  |  | (21) |  |  | 1 |  |  | 22 |  |  | (20) |  |  | 2 |  |  |
Customer relationships and distributor channels | 1,070 |  |  | (392) |  |  | 678 |  |  | 1,078 |  |  | (370) |  |  | 708 |  |  |
| $ | 3,479 |  |  | $ | (1,067) |  |  | $ | 2,412 |  |  | $ | 3,495 |  |  | $ | (1,007) |  |  | $ | 2,488 |  |  |
(1)In alignment with the Company’s strategy, the Company determined that certain tradenames with aggregate carrying values of $322 million no longer met the criteria to be classified as indefinite-lived tradenames effective January 1, 2024. The estimated useful lives range from 10 to 15 years, which will increase the Company’s annual amortization expense by $25 million, approximately $6 million quarterly (approximately $0.01 net loss per share per quarter). Amortization expense for intangible assets was $35 million and $27 million for the three months ended June 30, 2024 and 2023, respectively, and $69 million and $54 million for the six months ended June 30, 2024 and 2023, respectively. During the second quarter of 2023, the Company concluded that a triggering event had occurred for an indefinite-lived tradename in the Home Fragrance reporting unit in the Home and Commercial Solutions segment and 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 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 three and six months ended June 30, 2023, the Company recorded an aggregate non-cash impairment charge of $8 million, as the carrying value of the tradename exceeded its fair value. The Company concluded that the Baby reporting unit goodwill was not impaired during the second quarter of 2023.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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