Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Goodwill

Changes in the net carrying value of goodwill by segment were as follows (in millions):

	AIT		EVM		Total
Goodwill as of December 31, 2020	$	228	$	2,760	$	2,988
Retail Solutions move to EVM segment, effective January 1, 2021	(59)		59		—
Antuit acquisition	—		105		105
Fetch acquisition	—		174		174
Adaptive Vision acquisition	—		7		7
Reflexis purchase price allocation adjustments	—		(7)		(7)
Reflexis purchase price reduction	—		(1)		(1)
Foreign exchange impact	—		(1)		(1)
Goodwill as of December 31, 2021	$	169	$	3,096	$	3,265
Matrox acquisition	—		640		640
Fetch purchase price allocation adjustments	—		2		2
Antuit purchase price allocation adjustments	—		(4)		(4)
Foreign exchange impact	—		(4)		(4)
Goodwill as of December 31, 2022	$	169	$	3,730	$	3,899

See Note 5, Business Acquisitions for further details related to the Company’s acquisitions and purchase price allocation adjustments.

The Company’s goodwill balance consists of four reporting units. The Company completed its annual goodwill impairment testing during the fourth quarter of 2022 utilizing a quantitative approach. The estimated fair value of each reporting unit significantly exceeds its carrying value. However, there is risk of future impairment to the extent that an individual reporting unit’s performance does not meet projections. Additionally, if our current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors are not met, or if other valuation factors outside of our control change unfavorably, the estimated fair value of our reporting units could be adversely affected, leading to a potential impairment in the future.

No events occurred during the fiscal years ended 2022, 2021, or 2020 that indicated it was more likely than not that our goodwill was impaired.

Other Intangibles, net

The balances in Other Intangibles, net consisted of the following (in millions):

	As of December 31, 2022						As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets
Technology and patents	$	951	$	(621)	$	330	$	889	$	(566)	$	323
Customer and other relationships	860		(576)		284		631		(503)		128
Trade names	66		(50)		16		64		(46)		18
Total	$	1,877	$	(1,247)	$	630	$	1,584	$	(1,115)	$	469

Amortization expense was $136 million, $115 million, and $78 million for fiscal years ended 2022, 2021 and 2020, respectively.

Estimated future intangible asset amortization expense is as follows (in millions):

Year Ended December 31,
2023	$	103
2024	98
2025	97
2026	93
2027	78
Thereafter	161
Total	$	630