Bunge Global SABG

Bunge Global SA Goodwill & Intangibles Disclosure

10-KFiled Feb 20, 20253 min read
GOODWILL
Bunge generally performs its annual goodwill impairment analysis during the fourth quarter. If events or indicators of impairment occur between annual impairment analyses, the Company performs an impairment analysis at that date. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or the sale or disposition of a significant asset. In testing for a potential impairment of goodwill, the Company: (1) validates changes, if any, to its reporting units with goodwill balances; (2) allocates goodwill to its reporting units to which acquired goodwill relates; (3) determines the carrying value, or book value, of its reporting units; (4) estimates the fair value of each reporting unit using a discounted cash flow model and/or using market multiples; (5) compares the fair value of each reporting unit to its carrying value; and (6) if the estimated fair value of a reporting unit is less than the carrying value, the Company recognizes an impairment charge for such amount, not to exceed the total amount of goodwill allocated to that reporting unit.
Critical estimates in the determination of fair value under the income approach include, but are not limited to, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures, other expenses, and discount rates, all of which are subject to a high degree of judgment. Critical estimates in the determination of fair value under the market approach include, but are not limited to, determination of the guideline public companies and selection of the market multiples.
Changes in the carrying value of goodwill by reportable segment for the years ended December 31, 2024 and 2023 are as follows:
(US$ in millions)AgribusinessRefined and Specialty OilsMillingSugar and
Bioenergy		Total
Cost:
Balance at December 31, 2023$211 $300 $89 $— $600 
Additions2 — — — 2 
Disposals — — — — — 
Foreign currency translation(19)(9)(13)— (41)
Balance at December 31, 2024194 291 76 — 561 
Accumulated impairment losses:
Balance at December 31, 2023(2)(106)(3)— (111)
Impairment charge for the period— — — — — 
Disposals— — — — — 
Foreign currency translation— 3 — — 3 
Balance at December 31, 2024(2)(103)(3)— (108)
Net carrying value at December 31, 2024$192 $188 $73 $— $453 
(US$ in millions)AgribusinessRefined and Specialty OilsMillingSugar and
Bioenergy		Total
Cost:
Balance at December 31, 2022$203 $292 $85 $— $580 
Disposals— — — — — 
Foreign currency translation8 8 4 — 20 
Balance at December 31, 2023211 300 89 — 600 
Accumulated impairment losses:
Balance at December 31, 2022(2)(105)(3)— (110)
Impairment charge for the period — — — — — 
Disposals — — — — — 
Foreign currency translation— (1)— — (1)
Balance at December 31, 2023(2)(106)(3)— (111)
Net carrying value at December 31, 2023$209 $194 $86 $— $489 

Historical Timeline

Fiscal YearFiled
2024Feb 20, 2025Showing above
2023Feb 22, 2024

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.

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