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Goodwill
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

7. Goodwill

Goodwill is identified by segment as follows (in millions):

 

 

United States

 

 

Canada

 

 

International

 

 

Total

 

Balance at December 31, 2020 (1)

 

$

 

 

$

 

 

$

 

 

$

 

Additions

 

 

67

 

 

 

 

 

 

 

 

 

67

 

Balance at December 31, 2021

 

$

67

 

 

$

 

 

$

 

 

$

67

 

Additions

 

 

49

 

 

 

 

 

 

 

 

 

49

 

Balance at December 31, 2022

 

$

116

 

 

$

 

 

$

 

 

$

116

 

(1)
Net of prior years accumulated impairment of $518 million, $87 million and $99 million in the U.S., Canada and International segments, respectively.

As of December 31, 2022, the Company had $116 million goodwill in its U.S. Process Solutions reporting unit and no goodwill in other reporting units. As part of the annual goodwill impairment assessment, the Company performed a qualitative assessment that did not indicate a more detailed quantitative analysis was necessary. Therefore, no goodwill impairment was recognized. This assessment evaluated changes in macroeconomic conditions, overall industry and market considerations and company-specific business metrics, performance and events. The acquisition date fair value of goodwill related to acquisition completed in December 2022 was preliminary. See Note 20 “Transactions” for additional information.

As of December 31, 2021, the Company had $67 million goodwill in its U.S. Process Solutions reporting unit and performed its annual goodwill impairment test using a quantitative assessment resulting in no impairment. The calculated fair value of the U.S. Process Solutions reporting unit significantly exceeded its carrying value, using the discount rates of 13.0%.

As of December 31, 2020, the Company had no goodwill. During the first quarter of 2020, the Company’s market capitalization declined significantly driven by macroeconomic and geopolitical conditions including the collapse of oil prices caused by both surplus production and supply as well as the decrease in demand caused by the COVID-19 pandemic. Therefore, the Company performed an interim goodwill impairment test. As a result, for the quarter ended March 31, 2020 and the year ended December 31, 2020, the Company recognized $230 million goodwill impairment for both periods which was included in impairment and other charges in the consolidated statements of operations. The discount rates utilized to value the reporting units were in the range of 11.5% to 12.8%. No tax benefit was reported on the Company’s goodwill impairment for the year ended December 31, 2020.