Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets, Net

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Goodwill and Other Intangible Assets, Net
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Other Intangible Assets [Abstract]    
Goodwill Disclosure [Text Block] The changes in the carrying amount of goodwill by reportable segment (note 16) for the years ended December 31, 2022 and 2021 were as follows:
(in millions) QxH QVC-International Total
Balance as of December 31, 2020 $ 5,112  922  6,034 
Exchange rate fluctuations —  (66) (66)
Balance as of December 31, 2021 5,112  856  5,968 
Impairment (2,420) —  (2,420)
Exchange rate fluctuations —  (78) (78)
Balance as of December 31, 2022 $ 2,692  778  3,470 
 
Intangible Assets Disclosure  
(6) Goodwill and Other Intangible Assets, Net
The changes in the carrying amount of goodwill by reportable segment (note 16) for the years ended December 31, 2022 and 2021 were as follows:
(in millions) QxH QVC-International Total
Balance as of December 31, 2020 $ 5,112  922  6,034 
Exchange rate fluctuations —  (66) (66)
Balance as of December 31, 2021 5,112  856  5,968 
Impairment (2,420) —  (2,420)
Exchange rate fluctuations —  (78) (78)
Balance as of December 31, 2022 $ 2,692  778  3,470 
Other intangible assets consisted of the following:
December 31,
2022 2021 Weighted average remaining life (years)
(in millions) Gross
cost		 Accumulated
amortization		 Other intangible assets, net Gross
cost		 Accumulated
amortization		 Other intangible assets, net
Purchased and internally developed software $ 962  (670) 292  945  (659) 286  2.2
Affiliate and customer relationships 2,818  (2,630) 188  2,832  (2,598) 234  4.0
Debt origination fees 9  (3) 6  9  —  9  3.8
Tradenames (indefinite life) 2,698  —  2,698  2,878  —  2,878  N/A
$ 6,487  (3,303) 3,184  6,664  (3,257) 3,407 
N/A - Not applicable.
Amortization expense for other intangible assets was $174 million, $163 million and $149 million for the years ended December 31, 2022, 2021 and 2020, respectively.
As of December 31, 2022, the related amortization and interest expense for each of the next five years ending December 31 was as follows (in millions):
2023 $ 195 
2024 151 
2025 92 
2026 48 
2027 — 
During the third quarter of 2022, as a result of recent financial performance and macroeconomic conditions including inflation and higher interest rates, the Company initiated a process to evaluate its current business model and long-term business strategy. It was determined during the third quarter of 2022 that an indication of impairment existed for the QxH reporting unit related to its tradenames and goodwill. With the assistance of a third party specialist, the fair value of the tradenames was determined using the relief from royalty method, primarily using a discounted cash flow model using projections of future operating performance (income approach) and applying a royalty rate (market approach) (Level 3), and an impairment in the amount of $180 million related to the HSN tradename was recorded during the third quarter of 2022, in impairment losses in the consolidated statements of operations. After the triggering event and impairment loss recorded during the third quarter of 2022, the Company performed a qualitative tradename impairment analysis during its annual impairment assessment in the fourth quarter of 2022 and no further impairment was identified. Accumulated tradename impairment loss as of December 31, 2022 is $357 million.
During the third quarter of 2022, with the assistance of a third party specialist, the fair value of the QxH reporting unit was determined using a discounted cash flow method (Level 3), and a goodwill impairment in the amount of $2,420 million was recorded during the third quarter of 2022, in impairment losses in the consolidated statements of operations. After the triggering event and impairment loss recorded during the third quarter of 2022, the Company performed a qualitative goodwill impairment analysis during its annual impairment assessment in the fourth quarter of 2022 and no further impairment was identified. Accumulated goodwill impairment loss as of December 31, 2022 is $2,420 million.
Based on the quantitative assessment performed during the third quarter of 2022 and the resulting impairment losses recorded, the estimated fair values of the HSN tradename and the QxH reporting unit did not significantly exceed their carrying values as of December 31, 2022.