Note 2 — GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill by segment were as follows:
| | | | | | | | | | | | | | | | | | | |
| (In millions) | Specialty Engineered Materials | | Color, Additives and Inks | | | | Total |
| Balance at January 1, 2024 | $ | 682.5 | | | $ | 1,036.8 | | | | | $ | 1,719.3 | |
| | | | | | | |
| Currency translation | (26.2) | | | (33.4) | | | | | (59.6) | |
| Balance at December 31, 2024 | 656.3 | | | 1,003.4 | | | | | 1,659.7 | |
| | | | | | | |
| Currency translation | 55.1 | | | 42.8 | | | | | 97.9 | |
| Balance at December 31, 2025 | $ | 711.4 | | | $ | 1,046.2 | | | | | $ | 1,757.6 | |
Indefinite and finite-lived intangible assets consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of December 31, 2025 |
| (In millions) | | Acquisition Cost | | Accumulated Amortization | | Currency Translation | | Net |
| Customer relationships | | $ | 726.2 | | | $ | (269.7) | | | $ | 39.2 | | | $ | 495.7 | |
| Patents, technology and other | | 847.0 | | | (301.4) | | | 46.2 | | | 591.8 | |
| Indefinite-lived trade names | | 362.8 | | | — | | | 42.1 | | | 404.9 | |
| Total | | $ | 1,936.0 | | | $ | (571.1) | | | $ | 127.5 | | | $ | 1,492.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of December 31, 2024 |
| (In millions) | | Acquisition Cost | | Accumulated Amortization | | Currency Translation | | Net |
| Customer relationships | | $ | 726.2 | | | $ | (234.9) | | | $ | (0.4) | | | $ | 490.9 | |
| Patents, technology and other | | 847.0 | | | (255.8) | | | (6.1) | | | 585.1 | |
| Indefinite-lived trade names | | 362.8 | | | — | | | 11.6 | | | 374.4 | |
| Total | | $ | 1,936.0 | | | $ | (490.7) | | | $ | 5.1 | | | $ | 1,450.4 | |
Amortization of finite-lived intangible assets for the years ended December 31, 2025, 2024 and 2023 was $80.4 million, $77.8 million and $79.8 million, respectively.
We expect finite-lived intangibles amortization expense for the next five years as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In millions) | 2026 | | 2027 | | 2028 | | 2029 | | 2030 |
| Expected amortization expense | $ | 84.6 | | | $ | 82.4 | | | $ | 81.8 | | | $ | 81.5 | | | $ | 80.6 | |
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.