v3.26.1
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net (Notes)
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Goodwill and Other Intangible Assets, Net GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
Movements in goodwill attributable to each reportable segment for the three months ended March 31, 2026 were as follows:
(DOLLARS IN MILLIONS)TasteHealth & BiosciencesScentTotal
Balance at January 1, 2026$2,296 $4,465 $1,508 $8,269 
Foreign exchange(20)(22)(7)(49)
Balance at March 31, 2026$2,276 $4,443 $1,501 $8,220 
As of January 1, 2025, there is no remaining goodwill attributable to the Food Ingredients reporting unit.
Goodwill Impairment Test
Effective January 1, 2025, the Company reorganized its Nourish segment into two new reportable segments: Taste and Food Ingredients, to align with changes in the Company’s internal management reporting structure. As a result of this change, goodwill previously allocated to the Nourish reporting unit was reallocated between the new Taste and Food Ingredients reporting units. In accordance with ASC 350, the Company performed a quantitative goodwill impairment test on the former Nourish reporting unit immediately prior to the change, and separately tested goodwill for the new Taste and Food Ingredients reporting units following the reorganization. Based on the results of the impairment testing, the Company determined that the carrying amount of the Food Ingredients reporting unit exceeded its estimated fair value, and accordingly recognized a goodwill impairment charge of $1.153 billion. This charge is reflected in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended March 31, 2025.
The Company assessed the fair value of the reporting units using an income approach. Under the income approach, the Company determined the fair value by using a discounted cash flow method at a rate of return that reflects the relative risk of the projected future cash flows of each reporting unit, as well as a terminal value. The Company used the most current actual and forecasted operating data available. Key estimates and assumptions used in these valuations include revenue growth rates, gross margins, adjusted operating EBITDA margins, terminal growth rates and discount rates.
While management believes that the estimates and assumptions used in the impairment test were reasonable, changes in key assumptions, including lower revenue growth, operating margin, terminal growth rates or increase in discount rates could result in a future impairment of the Taste reporting unit. Such charge could have a material effect on the Consolidated Statements of Operations and Balance Sheets.
Other Intangible Assets
Other intangible assets, net consisted of the following amounts:
March 31,December 31,
(DOLLARS IN MILLIONS)20262025
Asset Type
Customer relationships$7,162 $7,200 
Technological know-how1,988 1,999 
Trade names & patents283 285 
Other24 24 
Total carrying value 9,457 9,508 
Accumulated Amortization
Customer relationships(2,275)(2,198)
Technological know-how(1,129)(1,087)
Trade names & patents(165)(159)
Other(21)(21)
Total accumulated amortization(3,590)(3,465)
Other intangible assets, net$5,867 $6,043 
Amortization
Amortization expense was $146 million and $143 million for the three months ended March 31, 2026 and 2025, respectively.
Amortization expense for the next five years, based on valuations and determinations of useful lives, is expected to be as follows:
(DOLLARS IN MILLIONS)Remainder of 20262027202820292030
Estimated future intangible amortization expense$434 $492 $478 $441 $437