DOW INC
For the period ended Dec 31, 2023. Filed Jan 31, 2024.
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FY2023 · Filed Jan 31, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Goodwill and Other Intangible Assets
NOTE 11 –GOODWILL AND OTHER INTANGIBLE ASSETS
The following table shows changes in the carrying amounts of goodwill by reportable segment for the years ended December 31, 2023 and 2022:
| Goodwill | Packaging & Specialty Plastics | Industrial Intermediates & Infrastructure | Performance Materials & Coatings | Total |
|---|---|---|---|---|
| In millions | ||||
| Balance at Jan 1, 2022 | $5,105 | $1,096 | $2,563 | $8,764 |
| Foreign currency impact | (5) | (3) | (112) | (120) |
| Balance at Dec 31, 2022 | $5,100 | $1,093 | $2,451 | $8,644 |
| Foreign currency impact | 3 | 1 | (7) | (3) |
| Balance at Dec 31, 2023 | $5,103 | $1,094 | $2,444 | $8,641 |
At December 31, 2023, goodwill was carried by all reporting units except Coatings & Performance Monomers.
Goodwill Impairments
The carrying amounts of goodwill at December 31, 2023 and 2022, were net of accumulated impairments of $309 million in Industrial Intermediates & Infrastructure and $2,530 million in Performance Materials & Coatings.
Goodwill Impairment Testing
The Company performs an impairment test of goodwill annually in the fourth quarter. In 2023, the Company performed qualitative testing for all reporting units that carried goodwill. Based on the results of the qualitative testing, the Company didnot perform quantitative testing on any reporting units in 2023, 2022, and 2021. The qualitative testing on the reporting units indicated that it was not more likely than not that fair value was less than the carrying value for the reporting units.
Other Intangible Assets
The following table provides information regarding the Company’s other intangible assets:
| Other Intangible Assets at Dec 31 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| In millions | GrossCarryingAmount | Accum Amort | Net | GrossCarryingAmount | Accum Amort | Net |
| Intangible assets: | ||||||
| Developed technology | $2,634 | $(2,181) | $453 | $2,651 | $(2,025) | $626 |
| Software | 1,352 | (981) | 371 | 1,358 | (962) | 396 |
| Trademarks/tradenames | 352 | (346) | 6 | 352 | (345) | 7 |
| Customer-related | 3,108 | (1,866) | 1,242 | 3,103 | (1,690) | 1,413 |
| Total other intangible assets | $7,446 | $(5,374) | $2,072 | $7,464 | $(5,022) | $2,442 |
The following table provides information regarding amortization expense related to intangible assets:
| Amortization Expense | 2023 | 2022 | 2021 |
|---|---|---|---|
| In millions | |||
| Other intangible assets, excluding software | $324 | $336 | $388 |
| Software, included in "Cost of sales" | $70 | $80 | $90 |
Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows:
| Estimated Amortization Expense for Next Five Years | |
|---|---|
| In millions | |
| 2024 | $379 |
| 2025 | $288 |
| 2026 | $213 |
| 2027 | $178 |
| 2028 | $157 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.