Goodwill and Other Intangible Assets (Notes)

12 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill in each of the Company’s reportable segments for the fiscal years ended September 30, 2021 and 2020 were as follows (in millions):


	September 30, 2019		Business Acquisitions		Business Divestitures		Impairments		Currency Translation and Other		September 30, 2020
Building Solutions North America	$	9,588	$	—	$	—	$	(424)	$	(4)	$	9,160
Building Solutions EMEA/LA	1,849		35		—		—		83		1,967
Building Solutions Asia Pacific	1,194		—		(11)		—		43		1,226
Global Products	5,547		21		—		—		11		5,579
Total	$	18,178	$	56	$	(11)	$	(424)	$	133	$	17,932

	September 30, 2020		Business Acquisitions		Business Divestitures		Impairments		Currency Translation and Other		September 30, 2021
Building Solutions North America	$	9,160	$	21	$	—	$	—	$	34	$	9,215
Building Solutions EMEA/LA	1,967		35		—		—		19		2,021
Building Solutions Asia Pacific	1,226		—		(7)		—		21		1,240
Global Products	5,579		244		—		—		36		5,859
Total	$	17,932	$	300	$	(7)	$	—	$	110	$	18,335

At September 30, 2019, accumulated goodwill impairment charges included $47 million related to the Building Solutions EMEA/LA - Latin America reporting unit.

The Company reviews goodwill for impairment during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. There were no goodwill impairments resulting from the fiscal 2021 and 2020 annual impairment tests. No reporting unit was determined to be at risk of failing the goodwill impairment test as of September 30, 2021.

During fiscal 2020, the Company considered the deterioration in general economic and market conditions due to the COVID-19 pandemic and its impact on each of the Company’s reporting units’ performance. Due to declines in cash flow projections of the North America Retail reporting unit in the third quarter of fiscal 2020 as a result of the COVID-19 pandemic, the Company concluded a triggering event occurred requiring assessment of impairment for its North America Retail reporting unit. As a result, the Company recorded a non-cash impairment charge of $424 million within restructuring and impairment costs in the consolidated statements of income in the third quarter of fiscal 2020, which was determined by comparing the carrying amount of a reporting unit to its fair value in accordance with ASU No. 2017-04, "Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which the Company early adopted. The North America Retail reporting unit has a remaining goodwill balance of $235 million at September 30, 2021. The Company used a discounted cash flow model to estimate the fair value of the reporting unit. Other than management's internal projections of future cash flows, the primary assumptions used in the model were the weighted-average cost of capital and long-term growth rates, which are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." Although the Company's cash flow forecasts are based on assumptions that are considered reasonable by management and consistent with the plans and estimates management is using to operate the underlying business, there was significant judgment in determining the expected future cash flows attributable to the North America Retail reporting unit.

The Company’s other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of (in millions):


	September 30, 2021						September 30, 2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Definite-lived intangible assets
Technology	$	1,464	$	(629)	$	835	$	1,332	$	(497)	$	835
Customer relationships	3,097		(1,191)		1,906		2,773		(969)		1,804
Miscellaneous	750		(354)		396		657		(268)		389
	5,311		(2,174)		3,137		4,762		(1,734)		3,028
Indefinite-lived intangible assets
Trademarks/tradenames	2,332		—		2,332		2,248		—		2,248
Miscellaneous	80		—		80		80		—		80
	2,412		—		2,412		2,328		—		2,328
Total intangible assets	$	7,723	$	(2,174)	$	5,549	$	7,090	$	(1,734)	$	5,356

The Company reviews indefinite-lived intangible assets for impairment during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. Indefinite-lived intangible assets primarily consist of trademarks and tradenames and are tested for impairment using a relief-from-royalty method.

There were no indefinite-lived intangible asset impairments resulting from fiscal 2021 and 2020 annual impairment tests. For fiscal 2021, the estimated fair values of all indefinite-lived intangibles substantially exceeded their carrying values, with the exception of the indefinite-lived trademarks related to the Company's Asia Pacific subscriber businesses. The estimated fair value for the Asia Pacific indefinite-lived trademark was consistent with its carrying value of $38 million.

During the second and third quarters of fiscal 2020, the Company determined that it had a triggering event at each reporting period end requiring assessment of impairment for certain of its indefinite-lived intangible assets due to declines in revenue directly attributable to the COVID-19 pandemic. As a result, the Company recorded an impairment charge of $62 million related primarily to the Company's retail business indefinite-lived intangible assets within restructuring and impairment costs in the consolidated statements of income in the second quarter of fiscal 2020. No further impairment was required to be recorded in the third quarter of fiscal 2020 as a result of the completed impairment assessment.

Amortization of other intangible assets included within continuing operations for the fiscal years ended September 30, 2021, 2020 and 2019 was $435 million, $386 million and $377 million, respectively. Excluding the impact of any future acquisitions, the Company anticipates amortization for fiscal 2022, 2023, 2024, 2025 and 2026 will be approximately $457 million, $439 million, $424 million, $403 million and $335 million, respectively.