Note 8 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

8.  Goodwill and Other Intangible Assets

The following table presents the changes in the carrying amount of goodwill (in millions):

	Optical Communications			Display Technologies			Specialty Materials		Life Sciences			Hemlock and Emerging Growth Businesses			Total
Balance as of December 31, 2021	$	915		$	125		$	150	$	616		$	615		$	2,421
Acquired goodwill		4						1								5
Foreign currency translation adjustment and other		(14	)		(4	)				(10	)		(4	)		(32	)
Balance as of December 31, 2022	$	905		$	121		$	151	$	606		$	611		$	2,394
Foreign currency translation adjustment and other		(1	)		(2	)				1			(12	)		(14	)
Balance as of December 31, 2023	$	904		$	119		$	151	$	607		$	599		$	2,380

Corning’s gross goodwill balance and accumulated impairment losses were $8.9 billion and $6.5 billion, respectively, as of  December 31, 2023 and 2022. Accumulated impairment losses were generated primarily through goodwill impairments related to the Optical Communications segment.

Management completed its fiscal 2023 annual impairment test as of October 1, 2023. The impairment test resulted in implied fair values of our reporting units that substantially exceeded each reporting unit’s carrying value. Based on the quantitative test performed in 2023, no goodwill impairment was required.

Other Intangible Assets, Net

Other intangible assets, net consisted of the following (in millions):

	December 31,
	2023						2022
	Gross		Accumulated amortization		Net		Gross		Accumulated amortization		Net
Amortized intangible assets:
Patents, trademarks & trade names	$	493	$	318	$	175	$	496	$	300	$	196
Customer lists and other (1)		1,464		734		730		1,461		628		833
Other intangible assets, net	$	1,957	$	1,052	$	905	$	1,957	$	928	$	1,029

(1) Other consists of intangible assets related to developed technologies and intellectual know-how.

Corning’s amortized intangible assets are primarily related to Optical Communications, Life Sciences and certain businesses within Hemlock and Emerging Growth Businesses.  The net carrying amount of intangible assets decreased during the year, primarily driven by amortization of $122 million.

Annual amortization expense is expected to be approximately $126 million, $119 million, $98 million, $94 million and $88 million for years 2024 through 2028, respectively.