NOTE 4 Goodwill

The changes in the carrying value of goodwill by reportable segment for the years ended December 31, are as follows:

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Total

 

Balance as of January 1, 2024

 

$

4,870

 

 

$

2,471

 

 

$

7,341

 

Acquisitions

 

 

671

 

 

 

27

 

 

 

698

 

Adjustments during measurement period (1)

 

 

(37

)

 

 

46

 

 

 

9

 

Disposals

 

 

(13

)

 

 

 

 

 

(13

)

Foreign currency translation adjustments

 

 

(55

)

 

 

(10

)

 

 

(65

)

Balance as of December 31, 2024

 

$

5,436

 

 

$

2,534

 

 

$

7,970

 

Acquisitions

 

 

3,557

 

 

 

3,330

 

 

 

6,887

 

Adjustments during measurement period (1)

 

 

(3

)

 

 

1

 

 

 

(2

)

Disposals

 

 

(5

)

 

 

 

 

 

(5

)

Foreign currency translation adjustments

 

 

188

 

 

 

49

 

 

 

237

 

Balance as of December 31, 2025

 

$

9,173

 

 

$

5,914

 

 

$

15,087

 

 

(1)
Provisional estimates of fair value are established at the time of each acquisition and are subsequently reviewed and finalized within the first year of operations subsequent to the acquisition dates. As of December 31, 2025, adjustments were made to the amounts initially recorded. See also Note 3.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 22, 2024
2022Feb 27, 2023
2021Feb 23, 2022
2020Feb 23, 2021
2019Feb 24, 2020
2018Feb 26, 2019
2017Feb 28, 2018
2016Feb 24, 2017
2015Feb 26, 2016

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.