DOW INC
For the period ended Dec 31, 2024. Filed Feb 4, 2025.
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FY2024 · Filed Feb 4, 2025
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Goodwill and Other Intangible Assets
NOTE 12 –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, 2024 and 2023:
| Goodwill | Packaging & Specialty Plastics | Industrial Intermediates & Infrastructure | Performance Materials & Coatings | Total |
|---|---|---|---|---|
| In millions | ||||
| Balance at Jan 1, 2023 | $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 |
| Foreign currency impact | (6) | (2) | (89) | (97) |
| Purchase of Circulus Holdings, LLC | 37 | — | — | 37 |
| Sale of laminating adhesives business | (16) | — | — | (16) |
| Balance at Dec 31, 2024 | $5,118 | $1,092 | $2,355 | $8,565 |
The Company has six reporting units in total: Coatings & Performance Monomers, Consumer Solutions, Hydrocarbons & Energy, Industrial Solutions, Packaging and Specialty Plastics and Polyurethanes & Construction
Chemicals. At December 31, 2024, goodwill was carried by all reporting units except Coatings & Performance Monomers.
Goodwill Impairments
The carrying amounts of goodwill at December 31, 2024 and 2023, 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 2024, the Company performed qualitative assessments for all reporting units that carried goodwill. Based on the results of the qualitative testing, the Company performed quantitative testing forone reporting unit in 2024 (zero in 2023 and 2022). The qualitative assessments on the remaining reporting units indicated that it was more likely than not that carrying value was less than the fair value for the reporting units. The quantitative testing conducted in 2024 concluded that no goodwill impairment existed.
Other Intangible Assets
The following table provides information regarding the Company’s other intangible assets:
| Other Intangible Assets at Dec 31 | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
| In millions | GrossCarryingAmount | Accum Amort | Net | GrossCarryingAmount | Accum Amort | Net |
| Intangible assets: | ||||||
| Developed technology | $2,541 | $(2,214) | $327 | $2,634 | $(2,181) | $453 |
| Software | 1,354 | (1,007) | 347 | 1,352 | (981) | 371 |
| Trademarks/tradenames | 324 | (318) | 6 | 352 | (346) | 6 |
| Customer-related | 2,896 | (1,855) | 1,041 | 3,108 | (1,866) | 1,242 |
| Total other intangible assets | $7,115 | $(5,394) | $1,721 | $7,446 | $(5,374) | $2,072 |
The following table provides information regarding amortization expense related to intangible assets:
| Amortization Expense | 2024 | 2023 | 2022 |
|---|---|---|---|
| In millions | |||
| Other intangible assets, excluding software | $310 | $324 | $336 |
| Software, included in "Cost of sales" | $67 | $70 | $80 |
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 | |
| 2025 | $294 |
| 2026 | $222 |
| 2027 | $187 |
| 2028 | $166 |
| 2029 | $155 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.