Goodwill And Other Intangibles (Note)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

The following table presents changes in the goodwill balances as allocated to each business segment for the years ended December 31, 2021 and 2020:


In millions	Industrial Packaging			Global Cellulose Fibers		Total
Balance as of December 31, 2019
Goodwill	$	3,410		$	52	$	3,462
Accumulated impairment losses	(296)			(52)		(348)
	3,114			—		3,114
Currency translation and other (a)	6			—		6
Goodwill additions/reductions	(5)		(b)(c)	—		(5)

Balance as of December 31, 2020
Goodwill	3,411			52		3,463
Accumulated impairment losses	(296)			(52)		(348)
	3,115			—		3,115
Currency translation and other (a)	(8)			—		(8)
Goodwill additions/reductions	23		(c)	—		23
Balance as of December 31, 2021
Goodwill	3,426			52		3,478
Accumulated impairment losses	(296)			(52)		(348)
Total	$	3,130		$	—	$	3,130

(a)Represents the effects of foreign currency translations and reclassifications.

(b) Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in the U.S.

The Company performed its annual testing of its reporting units for possible goodwill impairments by applying the qualitative assessment to its North America Industrial Packaging reporting unit and the quantitative goodwill impairment test to its EMEA Industrial Packaging reporting unit as of October 1, 2021.

For the current year evaluation, the Company assessed various assumptions, events and circumstances that would have affected the estimated fair value of the North America Industrial Packaging reporting unit under the qualitative assessment and the results of the qualitative assessments indicated that it was not more likely than not that the fair value of the reporting unit was less than its carrying value.

The Company also performed the quantitative goodwill impairment test which included comparing the carrying amount of the EMEA Industrial Packaging reporting unit to its estimated fair value.

The Company performed the quantitative goodwill impairment test for EMEA Industrial Packaging due to the changes in the reporting unit's asset base as a result of acquisitions and divestitures since the previous quantitative goodwill impairment test. The Company calculated the estimated fair value of the reporting unit using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. The carrying amount did not exceed the estimated fair value of the EMEA Industrial Packaging reporting unit.

In addition, the Company considered whether there were any events or circumstances outside of the annual evaluation that would reduce the fair value of its reporting units below their carrying amounts and necessitate a goodwill impairment evaluation. In consideration of all relevant factors, there were no indicators that would require goodwill impairment subsequent to October 1, 2021.

OTHER INTANGIBLES

Identifiable intangible assets comprised the following:


	2021						2020
In millions at December 31	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	493	$	273	$	220	$	483	$	244	$	239
Tradenames, patents and trademarks, and developed technology	170		131		39		170		117		53
Land and water rights	8		2		6		8		2		6
Software	15		15		—		15		15		—
Other	9		6		3		10		7		3
Total	$	695	$	427	$	268	$	686	$	385	$	301

The Company recognized the following amounts as amortization expense related to intangible assets:


In millions	2021		2020		2019
Amortization expense related to intangible assets	$	44	$	45	$	45

Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2022 – $44 million, 2023 – $40 million, 2024 – $40 million, 2025 – $35 million, 2026 – $30 million, and cumulatively thereafter – $73 million.