Goodwill and Other Identifiable Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

The Company tests indefinite-lived intangible assets and goodwill for impairment by either performing a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount.

In the first quarter 2022, due to the adverse economic impacts of Russian military forces invading Ukraine, the Company identified indicators that the carrying value of an indefinite-lived intangible asset and certain definite-lived intangible assets associated with the Company's operations in Russia may not be recoverable as of March 31, 2022, and the carrying value of those assets was assessed for impairment. As a result of this assessment, the Company recorded impairment charges of $124 million related to the indefinite-lived intangible asset and $23 million related to definite-lived intangible assets in the condensed consolidated statement of income during the three months ended March 31, 2022. Refer to Note 7, "Impairment and Other Related (Income)/Charges, Net" for additional information.

The Company did not identify an indication of goodwill impairment for any of its reporting units or an indication of impairment of any of its indefinite-lived intangible assets as of June 30, 2022.

The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2022 was as follows:


($ in millions)	Performance Coatings	Industrial Coatings	Total
January 1, 2022	$5,034	$1,214	$6,248
Acquisitions, including purchase accounting adjustments	31	(6)	25
Divestitures	(40)	—	(40)
Foreign currency impact	(83)	(31)	(114)
June 30, 2022	$4,942	$1,177	$6,119

A summary of the carrying value of the Company's identifiable intangible assets is as follows:


	June 30, 2022			December 31, 2021
($ in millions)	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks	$1,301	N/A	$1,301	$1,449	N/A	$1,449
Definite-Lived Identifiable Intangible Assets
Acquired technology	$840	($626)	$214	$862	($616)	$246
Customer-related	1,828	(1,060)	768	1,956	(1,064)	892
Trade names	313	(150)	163	336	(144)	192
Other	49	(46)	3	51	(47)	4
Total Definite-Lived Intangible Assets	$3,030	($1,882)	$1,148	$3,205	($1,871)	$1,334
Total Identifiable Intangible Assets	$4,331	($1,882)	$2,449	$4,654	($1,871)	$2,783

The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives.

As of June 30, 2022, estimated future amortization expense of identifiable intangible assets is as follows:


($ in millions)			Future Amortization Expense
Remaining six months of 2022			$95
2023			$165
2024			$150
2025			$135
2026			$115
2027			$100
Thereafter			$388