Goodwill And Other Intangibles (Note)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

The following table presents changes in the goodwill balances as allocated to each business segment for the years ended December 31, 2022 and 2021:


In millions	Industrial Packaging			Global Cellulose Fibers		Total
Balance as of December 31, 2020
Goodwill	$	3,411		$	52	$	3,463
Accumulated impairment losses	(296)			(52)		(348)
	3,115			—		3,115
Currency translation and other (a)	(8)			—		(8)
Goodwill additions/reductions	23		(b)	—		23

Balance as of December 31, 2021
Goodwill	3,426			52		3,478
Accumulated impairment losses	(296)			(52)		(348)
	3,130			—		3,130
Currency translation and other (a)	(13)			—		(13)
Impairment loss	(76)		(c)	—		(76)
Balance as of December 31, 2022
Goodwill	3,413			52		3,465
Accumulated impairment losses	(372)			(52)		(424)
Total	$	3,041		$	—	$	3,041

(a)Represents the effects of foreign currency translations and reclassifications.

(b)Reflects the goodwill for the acquisitions of EMEA Industrial Packaging box plants.

The Company performed its annual testing of its reporting units for possible goodwill impairments by applying the qualitative assessment to its North America Industrial Packaging reporting unit and the quantitative goodwill impairment test to its EMEA Industrial Packaging reporting unit as of October 1, 2022.

For the current year evaluation, the Company assessed various assumptions, events and circumstances that would have affected the estimated fair value of the North America Industrial Packaging reporting unit under the qualitative assessment and the results of the qualitative assessments indicated that it was not more likely than not that the fair value of the reporting unit was less than its carrying value.

The Company also performed the quantitative goodwill impairment test which included comparing the carrying amount of the EMEA Industrial Packaging reporting unit to its estimated fair value. The estimated fair value of the reporting unit was calculated using a weighted approach based on

discounted future cash flows, market multiples and transaction multiples which are classified as Level 2 and Level 3 within the fair value hierarchy. The determination of fair value using the discounted cash flow approach requires management to make significant estimates and assumptions related to forecasts of future revenues, operating profit margins, and discount rates. The determination of fair value using market multiples and transaction multiples requires management to make significant assumptions related to revenue multiples and adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples. The results of our quantitative goodwill impairment test indicated that the carrying amount exceeded the estimated fair value of the EMEA Industrial Packaging reporting unit

and it was determined that all of the goodwill in the reporting unit, totaling $76 million, was impaired. The decline in the fair value of EMEA Industrial Packaging

and resulting impairment charge was due to the impacts of certain negative macroeconomic conditions, including the impacts from inflation and the geopolitical environment to the reporting unit.

OTHER INTANGIBLES

Identifiable intangible assets are recorded in Deferred Charges and Other Assets in the accompanying consolidated balance sheet and comprised the following:


	2022						2021
In millions at December 31	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	490	$	303	$	187	$	493	$	273	$	220
Tradenames, patents and trademarks, and developed technology	170		146		24		170		131		39
Land and water rights	8		2		6		8		2		6
Other	23		20		3		24		21		3
Total	$	691	$	471	$	220	$	695	$	427	$	268

The Company recognized the following amounts as amortization expense related to intangible assets:


In millions	2022		2021		2020
Amortization expense related to intangible assets	$	44	$	44	$	45

Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2023 – $40 million, 2024 – $40 million, 2025 – $34 million, 2026 – $29 million, 2027 – $11 million, and cumulatively thereafter – $60 million.