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Goodwill and Other Intangible Assets, Net | 9 Months Ended
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Sep. 30, 2024
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, 2024 is as follows (in millions):
|  |  |  |  |  |  |  | September 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 |  |  |  |  |  | 3 |  |  | 3,414 |  |  | (1,087) |  |  | 2,327 |
Outdoor and Recreation | — |  |  |  |  |  | — |  |  | 788 |  |  | (788) |  |  | — |
| $ | 3,071 |  |  |  |  |  | $ | 3 |  |  | $ | 8,254 |  |  | $ | (5,180) |  |  | $ | 3,074 |
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 L&D 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 and recorded a non-cash impairment charge of $241 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, 2024 |  | December 31, 2023 |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  |
Tradenames — indefinite life (1) | $ | 957 |  |  | $ | — |  |  | $ | 957 |  |  | $ | 1,535 |  |  | $ | — |  |  | $ | 1,535 |  |  |
Tradenames — other (1) | 551 |  |  | (139) |  |  | 412 |  |  | 232 |  |  | (105) |  |  | 127 |  |  |
Capitalized software | 654 |  |  | (538) |  |  | 116 |  |  | 628 |  |  | (512) |  |  | 116 |  |  |
Patents and intellectual property | 22 |  |  | (21) |  |  | 1 |  |  | 22 |  |  | (20) |  |  | 2 |  |  |
Customer relationships and distributor channels | 1,075 |  |  | (406) |  |  | 669 |  |  | 1,078 |  |  | (370) |  |  | 708 |  |  |
| $ | 3,259 |  |  | $ | (1,104) |  |  | $ | 2,155 |  |  | $ | 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 $34 million and $28 million for the three months ended September 30, 2024 and 2023, respectively, and $103 million and $82 million for the nine months ended September 30, 2024 and 2023, respectively. During the third quarter of 2024, the Company concluded that triggering events had occurred for indefinite-lived tradenames in the H&CS and L&D segments, as a result of downward revisions of forecasted cash flows primarily due to lower volume and profitability expectations. The Company performed quantitative impairment tests and determined that the indefinite-lived tradenames in the H&CS and L&D segments were impaired. During the third quarter of 2024, the Company recorded non-cash impairment charges of $190 million and $70 million for the indefinite-lived tradenames in the H&CS and L&D segments, respectively, as the carrying values exceeded their fair values. In addition, the Company concluded that a triggering event had occurred for long-lived assets related to its Outdoor and Recreation (“O&R”) segment, as a result of a downward revision of forecasted cash flows primarily due to lower volume and profitability expectations. As a result, the Company estimated the future cash flows for the asset group and compared the sum of the undiscounted cash flows to the carrying value of the asset group. The Company concluded that the sum of the undiscounted cash flows was in excess of the asset group’s carrying value. As such, there was no impairment charge associated with the long-lived assets of the O&R segment. During the third quarter of 2023, the Company concluded that a triggering event had occurred for an indefinite-lived tradename in the O&R 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 O&R 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 O&R 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 an indefinite-lived tradename in the Home Fragrance reporting unit in the H&CS 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 H&CS 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.

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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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