Goodwill and Other Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill Attributable to Each Reportable Segment

Goodwill
($ in millions)	Performance Coatings	Industrial Coatings	Total
January 1, 2022	$5,034	$1,214	$6,248
Acquisitions, including purchase accounting adjustments	31	15	46
Divestitures	(40)	—	(40)
Foreign currency impact	(144)	(32)	(176)
December 31, 2022	$4,881	$1,197	$6,078
Acquisitions, including purchase accounting adjustments	126	13	139
Divestitures	(5)	—	(5)
Foreign currency impact	150	(4)	146
Goodwill impairment	(158)	—	(158)
December 31, 2023	$4,994	$1,206	$6,200

In the fourth quarter, the Company tests the carrying value of goodwill for impairment, as discussed in Note 1. “Summary of Significant Accounting Policies.” Based on the annual goodwill impairment test performed in the fourth quarter 2023, the Company determined that the estimated fair value of the traffic solutions reporting unit was less than its carrying value, resulting in recognition of a goodwill impairment charge of $158 million in Impairment and other related charges, net in the accompanying consolidated statements of income. After recording the goodwill impairment charge of $158 million, the remaining goodwill balance recorded for the traffic solutions reporting unit was $391 million as of December 31, 2023. The fair value of the traffic solutions reporting unit was estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model included projected future revenues, a discount rate, operating cash flows, capital expenditures, and a tax rate. The decline in the fair value of the traffic solutions reporting unit compared to prior periods was primarily due to an increase in the weighted average cost of capital (discount rate assumption) reflecting the current interest rate environment. In addition, the fair value was impacted by a decline in the reporting unit’s long-term cash generation forecast due to the highly inflationary environment in Argentina and the fourth quarter 2023 divestitures of its European and Australian businesses.

In 2022 and 2021, the annual impairment testing of goodwill did not result in impairment of any of the Company’s reporting units. As of December 31, 2023, accumulated goodwill impairment losses totaled $158 million.

Identifiable Intangible Assets with Finite Lives

Identifiable Intangible Assets
	December 31, 2023			December 31, 2022
($ in millions)	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks	$1,442	$—	$1,442	$1,325	$—	$1,325
Definite-Lived Identifiable Intangible Assets
Acquired technology	$845	($678)	$167	$827	($636)	$191
Customer-related	1,933	(1,259)	674	1,855	(1,112)	743
Trade names	319	(180)	139	311	(158)	153
Other	50	(48)	2	50	(48)	2
Total Definite Lived Intangible Assets	$3,147	($2,165)	$982	$3,043	($1,954)	$1,089
Total Identifiable Intangible Assets	$4,589	($2,165)	$2,424	$4,368	($1,954)	$2,414

In the fourth quarter, the Company tests the carrying value of indefinite-lived trademarks for impairment, as discussed in Note 1, “Summary of Significant Accounting Policies.” In conjunction with both the 2023 and 2022 annual impairment tests, the Company determined that the estimated fair value of certain trademarks in the Performance Coatings segment was less than the carrying value, resulting in recognition of impairment charges of $2 million and $4 million, respectively, in Impairment and other related charges, net in the accompanying consolidated statement of income. In 2021, the annual impairment testing review of indefinite-lived intangibles did not result in an impairment.

In the first quarter 2022, due to the adverse economic impacts of the Russian invasion in Ukraine, the Company recognized $147 million of Impairment and other related charges, net in the consolidated statement of income related to certain definite-lived and indefinite-lived intangible assets in the Performance Coatings segment. Refer to Note 7, “Impairment and Other Related Charges, Net” for further details.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

($ in millions)	2024	2025	2026	2027	2028
Estimated future amortization expense	$147	$128	$107	$96	$83