Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

5.    Goodwill and Other Intangible Assets

Goodwill was $9,254 million and $9,323 million as of December 31, 2023 and 2022, respectively. As discussed in Note 2, we perform our annual impairment test of goodwill balances for our reporting units using a measurement date of October 1. We will also perform interim tests if an impairment indicator exists. As a result of a longer-than-anticipated ramp toward full scale and profitability of a business engaged in accelerating film and plastic wrap recycling capabilities, we recorded a goodwill impairment charge of $168 million, with $22 million attributable to noncontrolling interests. This charge was partially offset by the recognition of $46 million of income related to the reversal of a liability for contingent consideration associated with our investment in such business. We have a controlling interest in the business, and it is, therefore, consolidated in our financial statements as part of our Recycling Processing and Sales segment. Fair value of the business was estimated using an income approach based on long-term projected discounted future cash flows of the reporting unit. Partially offsetting the decrease in our goodwill balance was a $90 million increase in goodwill associated with acquisitions primarily within our Collection and Disposal businesses. See Notes 11 and 17 for additional information.

Goodwill is included within each segment’s total assets. For segment reporting purposes, our recycling facilities and recycling brokerage services are included within our Recycling Processing and Sales segment. Prior to 2023, our recycling facilities were reflected as a component of the respective Tier segments and our recycling brokerage services were included as a component of our “Other” operations. Reclassifications have been made to our prior period consolidated financial

information to conform to the current year presentation. The following table presents changes in goodwill during the reported periods (in millions):

							Recycling
	Collection and Disposal						Processing
	East Tier		West Tier		Other Ancillary		and Sales		Other		Total
Balance, December 31, 2021	$	5,008	$	3,673	$	25	$	321	$	1	$	9,028
Acquired goodwill		92		24		2		207		—		325
Divested goodwill		—		—		—		—		—		—
Foreign currency translation and other		(28)		(1)		—		(1)		—		(30)
Balance, December 31, 2022	$	5,072	$	3,696	$	27	$	527	$	1	$	9,323
Acquired goodwill		13		70		—		7		—		90
Divested goodwill		—		—		—		—		—		—
Impairments		—		—		—		(168)		—		(168)
Foreign currency translation and other		9		—		—		—		—		9
Balance, December 31, 2023	$	5,094	$	3,766	$	27	$	366	$	1	$	9,254

Our other intangible assets consisted of the following as of December 31 (in millions):

	Customer		Covenants		Licenses,
	and Supplier		Not-to-		Permits
	Relationships		Compete		and Other		Total
2023
Intangible assets	$	1,235	$	46	$	141	$	1,422
Less: Accumulated amortization		(551)		(19)		(93)		(663)
	$	684	$	27	$	48	$	759
2022
Intangible assets	$	1,288	$	51	$	141	$	1,480
Less: Accumulated amortization		(543)		(23)		(87)		(653)
	$	745	$	28	$	54	$	827

Amortization expense for other intangible assets was $129 million, $129 million and $143 million for 2023, 2022 and 2021, respectively. Additional information related to other intangible assets acquired through business combinations is included in Note 17. As of December 31, 2023 and 2022, we had $21 million and $19 million, respectively, of licenses, permits and other intangible assets that are not subject to amortization because they do not have stated expirations or have routine, administrative renewal processes. As of December 31, 2023, we expect annual amortization expense related to other intangible assets to be $119 million in 2024, $109 million in 2025, $86 million in 2026, $80 million in 2027 and $66 million in 2028.