v3.24.2
Goodwill and Other Intangible Assets, Net
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net
Goodwill activity for the six months ended June 30, 2024 is as follows (in millions):
June 30, 2024
Segments
Net Book Value at December 31, 2023
Foreign
Exchange
Gross
Carrying
Amount
Accumulated
Impairment
Charges
Net Book Value
Home and Commercial Solutions$747 $— $4,052 $(3,305)$747 
Learning and Development2,324 (16)3,395 (1,087)2,308 
Outdoor and Recreation— — 788 (788)— 
$3,071 $(16)$8,235 $(5,180)$3,055 

Other intangible assets, net, are comprised of the following (in millions):
June 30, 2024December 31, 2023
Gross
Carrying
Amount
Accumulated Amortization
Net Book
Value
Gross
Carrying
Amount
Accumulated
Amortization
Net Book
Value
Tradenames — indefinite life (1)
$1,199 $— $1,199 $1,535 $— $1,535 
Tradenames — other (1)
549 (126)423 232 (105)127 
Capitalized software639 (528)111 628 (512)116 
Patents and intellectual property22 (21)1 22 (20)2 
Customer relationships and distributor channels1,070 (392)678 1,078 (370)708 
$3,479 $(1,067)$2,412 $3,495 $(1,007)$2,488 

(1)In alignment with the Company’s strategy, the Company determined that certain tradenames with aggregate carrying values of $322 million no longer met the criteria to be classified as indefinite-lived tradenames effective January 1, 2024. The estimated useful lives range from 10 to 15 years, which will increase the Company’s annual amortization expense by $25 million, approximately $6 million quarterly (approximately $0.01 net loss per share per quarter).

Amortization expense for intangible assets was $35 million and $27 million for the three months ended June 30, 2024 and 2023, respectively, and $69 million and $54 million for the six months ended June 30, 2024 and 2023, respectively.

During the second quarter of 2023, the Company concluded that a triggering event had occurred for an indefinite-lived tradename in the Home Fragrance reporting unit in the Home and Commercial Solutions segment and for the goodwill associated with the Baby reporting unit in the Learning and Development segment, as a result of a downward revision of forecasted cash flows due to softening global demand, primarily caused by continued inflationary pressure that is impacting discretionary spending behavior of consumers, as well as rising interest rates. The Company performed a quantitative impairment test and determined that the indefinite-lived tradename in the Home and Commercial Solutions segment was impaired. During the three and six months ended June 30, 2023, the Company recorded an aggregate non-cash impairment charge of $8 million, as the carrying value of the tradename exceeded its fair value. The Company concluded that the Baby reporting unit goodwill was not impaired during the second quarter of 2023.