AUTOLIV INC Goodwill & Intangibles Disclosure
10. Goodwill and Intangible Assets
|
|
December31, |
|
|||||
GOODWILL (Dollars in millions) |
|
2025 |
|
|
2024 |
|
||
Carrying amount at beginning of year |
|
$ |
1,368 |
|
|
$ |
1,378 |
|
Translation differences |
|
|
11 |
|
|
|
(10 |
) |
Carrying amount at end of year |
|
$ |
1,379 |
|
|
$ |
1,368 |
|
Approximately $1.2 billion of the Company’s goodwill is associated with the 1997 merger of Autoliv AB and the Automotive Safety Products Division of Morton International, Inc. No goodwill impairment charges were recognized during 2025, 2024 or 2023.
|
|
December 31, |
|
|||||
AMORTIZABLE INTANGIBLES (Dollars in millions) |
|
2025 |
|
|
2024 |
|
||
Gross carrying amount |
|
$ |
401 |
|
|
$ |
386 |
|
Accumulated amortization |
|
|
(393 |
) |
|
|
(379 |
) |
Carrying value |
|
$ |
7 |
|
|
$ |
7 |
|
At December 31, 2025, intangible assets subject to amortization mainly relate to acquired technology. No significant impairments of intangible assets were recognized during 2025, 2024 or 2023.
Amortization expense related to intangible assets for the years 2025, 2024 and 2023 were immaterial and estimated future amortization expense is immaterial for all future periods.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2018 | Feb 21, 2019 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.