GOODWILL AND OTHER INTANGIBLES

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES

During the fourth quarter of each year, the Company assesses its goodwill and indefinite-lived intangible assets assigned to each of its reporting units. In addition, the Company may test goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value. No events or circumstances were noted in the nine months ended September 30, 2023 requiring additional assessment or testing. Future changes in the judgments, assumptions and estimates from those used in acquisition-related valuations and goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect the Company’s financial statements in any given year.

A summary of the changes in the carrying amount of goodwill are as follows:

(in millions)	Air Management		Drivetrain & Battery Systems		ePropulsion		Total
Gross goodwill balance, December 31, 2022	$	1,566	$	1,434	$	480	$	3,480
Accumulated impairment losses, December 31, 2022	(502)		—		—		(502)
Net goodwill balance, December 31, 2022*	$	1,064	$	1,434	$	480	$	2,978
Goodwill during the period:
Acquisitions	2		—		—		2
Other, primarily translation adjustment	(6)		(10)		(28)		(44)
Ending balance, September 30, 2023	$	1,060	$	1,424	$	452	$	2,936

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* The December 31, 2022 balances have been recast for a change in reportable segments that was made during the first quarter of 2023. Refer to Note 22, “Reportable Segments And Related Information” for more information.

The Company’s other intangible assets, primarily from acquisitions, consist of the following:

		September 30, 2023						December 31, 2022
(in millions)	Estimated useful lives (years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets:
Patented and unpatented technology	5 - 15	$	349	$	134	$	215	$	349	$	111	$	238
Customer relationships	6 - 15	620		287		333		639		267		372
Miscellaneous	2 - 5	9		6		3		9		6		3
Total amortized intangible assets		978		427		551		997		384		613
Unamortized trade names		6		—		6		6		—		6
Total other intangible assets		$	984	$	427	$	557	$	1,003	$	384	$	619