GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

H. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill at December 31, 2023, by segment, was as follows, in millions:

	Gross Goodwill At December 31, 2023		Accumulated Impairment Losses		Net Goodwill At December 31, 2023
Plumbing Products	$	677	$	(301)	$	377
Decorative Architectural Products	366		(139)		227
Total	$	1,043	$	(440)	$	604

The changes in the carrying amount of goodwill for years ended December 31, 2023 and 2022, by segment, were as follows, in millions:

	Gross Goodwill At December 31, 2022		Accumulated Impairment Losses		Net Goodwill At December 31, 2022		Acquisitions (A)		Pre-tax Impairment Charge		Foreign Currency Translation		Net Goodwill At December 31, 2023
Plumbing Products	$	611	$	(301)	$	310	$	59	$	—	$	7	$	377
Decorative Architectural Products	366		(139)		227		—		—		—		227
Total	$	977	$	(440)	$	537	$	59	$	—	$	7	$	604

	Gross Goodwill At December 31, 2021		Accumulated Impairment Losses		Net Goodwill At December 31, 2021		Acquisitions		Pre-tax Impairment Charge		Foreign Currency Translation		Net Goodwill At December 31, 2022
Plumbing Products	$	623	$	(301)	$	322	$	—	$	—	$	(12)	$	310
Decorative Architectural Products	366		(120)		246		—		(19)		—		227
Total	$	989	$	(421)	$	568	$	—	$	(19)	$	(12)	$	537

(A)    In the third quarter of 2023, we acquired Sauna360. Refer to Note B for additional information.

Other indefinite-lived intangible assets were $108 million and $102 million at December 31, 2023 and 2022, respectively, and principally included registered trademarks.

We completed our annual impairment testing of goodwill and other indefinite-lived intangible assets in the fourth quarters of 2023, 2022 and 2021. We recognized a $15 million non-cash impairment charge within our Decorative Architectural Products segment to other indefinite-lived intangible assets in the fourth quarter of 2023 due to competitive market conditions and increased cost of capital in our lighting business. We recognized a $19 million and $7 million non-cash impairment charge within our Decorative Architectural Products segment to goodwill and other indefinite-lived intangible assets, respectively, in the fourth quarter of 2022 due to competitive market conditions, higher inflationary costs and increased cost of capital in our lighting business. We recognized a $45 million non-cash goodwill impairment charge within our Decorative Architectural Products segment in the fourth quarter of 2021 due to competitive market conditions and higher inflationary costs in our lighting business. There was no impairment of goodwill for any of our reporting units or of our other indefinite-lived intangible assets in any of these years, other than as disclosed above.

The carrying value of our definite-lived intangible assets was $269 million (net of accumulated amortization of $120 million) at December 31, 2023 and $248 million (net of accumulated amortization of $94 million) at December 31, 2022 and principally included customer relationships with a weighted average amortization period of 16 years in 2023 and 15 years in 2022. Amortization expense related to the definite-lived intangible assets was $31 million, $29 million and $31 million in 2023, 2022 and 2021, respectively.

H. GOODWILL AND OTHER INTANGIBLE ASSETS (Concluded)

At December 31, 2023, amortization expense related to the definite-lived intangible assets during each of the next five years will be as follows: 2024 – $31 million; 2025 – $26 million; 2026 – $25 million; 2027 – $24 million and 2028 – $21 million.

The increase in our indefinite-lived and definite-lived intangible assets is primarily a result of our acquisition of Sauna360.