Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Note 5. Goodwill and Intangible Assets

Goodwill

Changes in goodwill consisted of:


	Latin America		AMEA		Europe		North America		Total
	(in millions)
January 1, 2024	$	1,607	$	3,065	$	8,350	$	10,874	$	23,896
Currency	(291)		(147)		(508)		(55)		(1,001)
Acquisition (1)	—		122		—		—		122


Balance at December 31, 2024	$	1,316	$	3,040	$	7,842	$	10,819	$	23,017
Currency	40		14		366		(1)		419
Other (1)	—		3		—		—		3


Balance at March 31, 2025	$	1,356	$	3,057	$	8,208	$	10,818	$	23,439

(1)Relates to purchase price allocation and subsequent adjustments for Evirth. See Note 2, Acquisitions and Divestitures for additional information.

Intangible Assets

Intangible assets consisted of the following:


	As of March 31, 2025						As of December 31, 2024
	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
	(in millions)
Indefinite-life intangible assets (1)	$	18,081	$	—	$	18,081	$	17,770	$	—	$	17,770
Definite-life intangible assets	3,360		(2,311)		1,049		3,306		(2,228)		1,078
Total	$	21,441	$	(2,311)	$	19,130	$	21,076	$	(2,228)	$	18,848

(1)We recorded intangible asset impairments of $153 million in 2024 within asset impairment and exit costs in the condensed consolidated statement of earnings.

Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements.

Amortization expense for intangible assets was $37 million for the three months ended March 31, 2025 and $38 million for the three months ended March 31, 2024.

For the next five years, we estimate annual amortization expense of approximately (reflecting March 31, 2025 exchange rates):


	(in millions)
2025	$	140
2026	110
2027	90
2028	85
2029	85

Impairment Assessment:

We test our reporting units and brands for impairment annually as of July 1, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. During the first quarter of 2025, we evaluated our goodwill impairment and intangible asset impairment risk

through an assessment of potential triggering events. We considered qualitative and quantitative information in our assessment and concluded there were no impairment indicators.

During our 2024 annual indefinite-life intangible assets testing, we recorded $153 million of intangible asset impairment charges related to two biscuit brands in the Europe segment, one biscuit brand in the AMEA segment and one candy and one biscuit brand in the Latin America segment. Additionally, we identified thirteen brands that each had a fair value in excess of book value of 10% or less. The aggregate book value of the thirteen brands was $3.0 billion as of March 31, 2025. We believe our current plans for each of these brands will allow them to not be impaired, but if plans to grow brand revenue and earnings, and expand margin are not met or specific valuation factors outside of our control, such as discount rates, change significantly then a brand or brands could become impaired in the future.