Marathon Petroleum Corp
For the period ended Dec 31, 2024. Filed Feb 27, 2025.
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FY2024 · Filed Feb 27, 2025
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16. Goodwill and Intangibles
- Goodwill and Intangibles
Goodwill
MPC annually evaluates goodwill for impairment as of November 30, as well as whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit with goodwill is less than its carrying amount. There were no impairments of goodwill required based on our annual test of goodwill in 2024 and 2023.
At December 31, 2024, MPC had four reporting units with goodwill totaling approximately $8.24 billion. For the annual impairment assessment as of November 30, 2024, management performed only a qualitative assessment for three reporting units as we determined it was more likely than not that the fair value of the reporting units exceeded the carrying value. A quantitative assessment was performed for the remaining reporting unit, which resulted in the fair value of the reporting unit exceeding its carrying value by greater than 10 percent.
The changes in the carrying amount of goodwill for 2024 were as follows:
| (Millions of dollars) | Refining & Marketing | Midstream | Total |
|---|---|---|---|
| Balance as of December 31, 2022 | $561 | $7,683 | $8,244 |
| Impairment losses | — | — | — |
| Balance as of December 31, 2023 | 561 | 7,683 | 8,244 |
| Impairment losses | — | — | — |
| Balance as of December 31, 2024 | $561 | $7,683 | $8,244 |
| Gross goodwill as of December 31, 2024 | $6,141 | $10,824 | $16,965 |
| Accumulated impairment losses | (5,580) | (3,141) | (8,721) |
| Balance as of December 31, 2024 | $561 | $7,683 | $8,244 |
Intangible Assets
Our definite lived intangible assets as of December 31, 2024 and 2023 are as shown below.
| December 31, 2024 | December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (Millions of dollars) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net |
| Customer contracts and relationships | $4,111 | $2,446 | $1,665 | $3,838 | $2,132 | $1,706 |
| Brand rights and tradenames | 101 | 89 | 12 | 101 | 79 | 22 |
| Royalty agreements | 141 | 120 | 21 | 173 | 142 | 31 |
| Other | 36 | 31 | 5 | 41 | 35 | 6 |
| Total | $4,389 | $2,686 | $1,703 | $4,153 | $2,388 | $1,765 |
At both December 31, 2024 and 2023, we had indefinite lived intangible assets of $71 million, which are emission allowance credits.
Amortization expense was $266 million in 2024 and $316 million in 2023. Estimated future amortization expense for the next five years related to the intangible assets at December 31, 2024 is as follows:
| (Millions of dollars) | |
|---|---|
| 2025 | $250 |
| 2026 | 230 |
| 2027 | 202 |
| 2028 | 180 |
| 2029 | 16 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.