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Goodwill and Other Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill Movements in goodwill attributable to each reportable segment during the years ended December 31, 2023 and 2024 were as follows:
(DOLLARS IN MILLIONS) | Nourish |  | Health & Biosciences |  | Scent |  | Pharma Solutions |  | Total
Balance at December 31, 2022 | $ | 6,054 |  |  | $ | 4,335 |  |  | $ | 1,745 |  |  | $ | 1,239 |  |  | $ | 13,373 |
Impairment | (2,623) |  |  | — |  |  | — |  |  | — |  |  | (2,623) |
Transferred to assets held for sale(1) | — |  |  | — |  |  | (267) |  |  | — |  |  | (267) |
Reduction from business divestitures | (14) |  |  | — |  |  | — |  |  | — |  |  | (14) |
Foreign Exchange | 72 |  |  | 56 |  |  | 12 |  |  | 26 |  |  | 166 |
Balance at December 31, 2023 | 3,489 |  |  | 4,391 |  |  | 1,490 |  |  | 1,265 |  |  | 10,635 |
Transferred to assets held for sale(2) | (55) |  |  | — |  |  | — |  |  | (1,248) |  |  | (1,303) |
Reduction from business divestiture(3) | (10) |  |  | — |  |  | — |  |  | — |  |  | (10) |
Foreign exchange | (104) |  |  | (96) |  |  | (25) |  |  | (17) |  |  | (242) |
Balance at December 31, 2024 | $ | 3,320 |  |  | $ | 4,295 |  |  | $ | 1,465 |  |  | $ | — |  |  | $ | 9,080 |
_______________________ (1)Related to the Cosmetic Ingredients business that was classified as held for sale as of December 31, 2023. See Note 4 for additional information. (2)Related to the Pharma Solutions disposal group and the Nitrocellulose business. The Company recognized $64 million of impairment related to the Pharma Solutions disposal group classified as held for sale as of December 31, 2024. See Note 4 for additional information. (3)Relates to the divestiture of the Flavors & Essences UK business. See Note 4 for additional information. The goodwill balance at December 31, 2024 and December 31, 2023 included $2.623 billion and $2.250 billion of accumulated impairment related to the Nourish reportable segment and Health & Biosciences reportable segment, respectively. The accumulated impairment relates to impairment charges recorded in 2023 and 2022. Goodwill Impairment Test For the annual impairment test as of November 30, 2024, the Company performed quantitative impairment tests by comparing the fair value of the reporting units with their carrying amounts. 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. In performing the quantitative impairment test, the Company determined that the fair value of the reporting units exceeded their carrying values and determined that there was no further impairment of goodwill in these reporting units as of November 30, 2024. Based on the quantitative impairment test performed, the Nourish, Health & Biosciences, Fragrance Compounds and Fragrance Ingredients reporting units had excess fair value over carrying value of approximately 22%, 18%, 169% and 37%, respectively. While management believes that the 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. Such impairment could have a material effect on our Consolidated Statements of Operations and Balance Sheets. During 2023, the Company determined that goodwill impairment triggering events occurred for its Nourish reporting unit. The Company determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of Income (Loss) and Comprehensive Loss for the year ended December 31, 2023. The primary drivers of the impairment charge were a decrease in fair value due to declines in projections of the reporting unit, impacts of continued inflation and increases in interest rates. During 2022, the Company determined that goodwill impairment triggering events occurred for its Nourish, Health & Biosciences and Pharma Solutions reporting units. The primary indicators that were deemed to be triggering events were declines in the Company’s projections across various reporting units and ongoing adverse macroeconomic impacts such as inflation, increases in interest rates and unfavorable effects from exchange rates. Based on the quantitative impairment test, using the income approach, the Company determined that the carrying value of the Health & Biosciences reporting unit exceeded its fair value and recorded a goodwill impairment charge of $2.250 billion in the Consolidated Statements of Income (Loss) and Comprehensive Loss for the year ended December 31, 2022. Effective January 1, 2025, our Nourish segment has been restructured into two newly designated operating segments: Taste and Food Ingredients. This change in management reporting necessitates the reallocation of goodwill between the two reporting units and the performance of a goodwill impairment test both prior to and subsequent to the change. While we have not yet completed our goodwill and long-lived assets impairment assessments required by this internal reporting structure, we anticipate incurring a material impairment charge in the first quarter of fiscal 2025, estimated to be in the range of $1.0 billion to $1.5 billion. Other Intangible Assets Other intangible assets, net consisted of the following amounts:
| December 31,
(DOLLARS IN MILLIONS) | 2024 |  | 2023
Asset Type |  |  |
Customer relationships | $ | 7,004 |  |  | $ | 8,211 |
Technological know-how | 1,937 |  |  | 2,355 |
Trade names & patents | 268 |  |  | 337 |
Other | 25 |  |  | 44 |
Total carrying value | 9,234 |  |  | 10,947 |
Accumulated Amortization |  |  |
Customer relationships | (1,765) |  |  | (1,619) |
Technological know-how | (875) |  |  | (813) |
Trade names & patents | (128) |  |  | (117) |
Other | (21) |  |  | (41) |
Total accumulated amortization | (2,789) |  |  | (2,590) |
Other intangible assets, net | $ | 6,445 |  |  | $ | 8,357 |
Amortization Amortization expense was $610 million for the year ended December 31, 2024, $680 million for the year ended December 31, 2023 and $727 million for the year ended December 31, 2022. Amortization expense for the next five years, based on valuations and determinations of useful lives, is expected to be as follows:
| December 31, |  |
(DOLLARS IN MILLIONS) | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  |
Estimated future intangible amortization expense | $ | 567 |  |  | $ | 564 |  |  | $ | 479 |  |  | $ | 467 |  |  | $ | 432 |  |  |
Impairment of Intangible Assets As discussed in Note 1, for the year ended December 31, 2022, an impairment charge of approximately $92 million was recorded in connection with intangible assets, primarily customer relationships and technological know-how, of an asset group that operated primarily in Russia, which was included within accumulated amortization.

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