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GOODWILL AND PURCHASED INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND PURCHASED INTANGIBLE ASSETS
3. GOODWILL AND PURCHASED INTANGIBLE ASSETS

Goodwill by Segment As described in Note 1, “Basis of Presentation and Significant Accounting Policies”, effective January 1, 2022, the Company realigned its reportable segments to correspond with changes to its operating model, management structure and organizational responsibilities. In connection with the change in reportable segments, during the first quarter of 2022, the Company determined its reporting units and then assigned goodwill to the new reporting units based on the relative fair value allocation approach. We have reclassified prior period goodwill disclosures to conform to the current period presentation.
The carrying amounts of goodwill by segment as of December 31, 2022, 2021, and 2020 are included in the tables below. Foreign currency fluctuations are included within other adjustments.
December 31, 2021December 31, 2022
In millionsGoodwillAccumulated ImpairmentTotalAdditionsImpairmentOtherGoodwillAccumulated ImpairmentTotal
Retail$1,015 $(34)$981 $ $ $(20)$995 $(34)$961 
Hospitality292 (23)269   (4)288 (23)265 
Digital Banking595  595   (1)594  594 
Payments & Network988  988 49  (1)1,036  1,036 
Self-Service Banking1,635 (101)1,534   (2)1,633 (101)1,532 
Other(1)
163 (11)152    163 (11)152 
Total goodwill$4,688 $(169)$4,519 $49 $ $(28)$4,709 $(169)$4,540 

December 31, 2020December 31, 2021
In millionsGoodwillAccumulated Impairment TotalAdditionsImpairmentOtherGoodwillAccumulated ImpairmentTotal
Retail$980 $(34)$946 $37 $— $(2)$1,015 $(34)$981 
Hospitality284 (23)261 11 — (3)292 (23)269 
Digital Banking560 — 560 35 — — 595 — 595 
Payments & Network360 — 360 628 — — 988 — 988 
Self-Service Banking659 (101)558 976 — — 1,635 (101)1,534 
Other(1)
163 (11)152 — — — 163 (11)152 
Total goodwill$3,006 $(169)$2,837 $1,687 $— $(5)$4,688 $(169)$4,519 

(1) Other segment includes the goodwill associated with our Technology & Telecommunications reporting unit.

Additions during the year ended December 31, 2022 include immaterial purchase accounting adjustments related to the Cardtronics acquisition as well as the goodwill acquired through the LibertyX transaction on January 5, 2022. For additional information on these business combinations, refer to Note 2, “Business Combinations”. Also during the year ended December 31, 2022, the Company divested a non-strategic business and derecognized $12 million of associated goodwill, reflected within other adjustments in the Retail and Hospitality segments.

Due to the change in reportable segments, management performed an interim goodwill impairment analysis immediately before and as of the effective date of January 1, 2022. The assessment as of December 31, 2021 was performed based on a qualitative assessment of the historical Banking, Retail, Hospitality and Telecommunications & Technology (“T&T”) reporting units. No impairment was identified. The assessment as of January 1, 2022 was performed using a weighted combination of both guideline public company and discounted cash flow valuation methods. This assessment included, but was not limited to, our consideration of the potential impacts of the COVID-19 pandemic to the current and future cash flows, as well as macroeconomic conditions, industry and market considerations, and financial performance, including forecasted revenue, earnings and capital expenditures of each reporting unit. Based on this analysis, it was determined that the fair value of all reporting units were substantially in excess of the carrying value.

As discussed in Note 1, “Basis of Presentation and Significant Accounting Policies”, management completed the annual goodwill impairment test during the fourth quarter of 2022. The Company elected to perform a qualitative assessment for all reporting units. This assessment included, but was not limited to, our consideration of macroeconomic conditions such as the impact of the COVID-19 pandemic, the war in Eastern Europe, foreign currency fluctuations, and significant cost inflation to the current year cash flows, the potential impacts to future cash flows as well as the excess of the fair value over the carrying value from the assessment performed as of January 1, 2022. Based on the qualitative assessments completed, it was determined that it was more likely than not that the fair value of each reporting unit was in excess of the carrying value. However, if the actual results differ from our expectations for any of our reporting units, there is a possibility we would have to perform an interim impairment test in 2023, which could lead to an impairment of goodwill or other assets.
Identifiable Intangible Assets NCR's purchased intangible assets, reported in Intangibles, net in the Consolidated Balance Sheets, were specifically identified when acquired, and are deemed to have finite lives. The gross carrying amount and accumulated amortization for NCR’s identifiable intangible assets were as set forth in the table below.
Amortization
Period
(in Years)
December 31, 2022December 31, 2021
In millionsGross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Identifiable intangible assets
Reseller & customer relationships
1 - 20
$1,103 $(463)$1,126 $(391)
Intellectual property
2 - 8
1,030 (558)1,008 (474)
Customer contracts
8
89 (89)89 (89)
Tradenames
1 - 10
128 (95)130 (83)
Total identifiable intangible assets$2,350 $(1,205)$2,353 $(1,037)

Amortization expense related to identifiable intangible assets was $172 million, $132 million, and $81 million for the years ended December 31, 2022, 2021, 2020, respectively.

The aggregate amortization expense (actual and estimated) for identifiable intangible assets for the following periods is:
For the years ended December 31 (estimated)
In millions20232024202520262027
Amortization expense$174 $163 $151 $141 $125