CABOT CORP Goodwill & Intangibles Disclosure
Note F. Goodwill and Intangible Assets
The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the fiscal years ended September 30, 2025 and 2024 are as follows:
|
|
Reinforcement |
|
|
Performance |
|
|
Total |
|
|||
|
|
(In millions) |
|
|||||||||
Balance at September 30, 2023 |
|
$ |
51 |
|
|
$ |
83 |
|
|
$ |
134 |
|
Foreign currency impact |
|
|
(3 |
) |
|
|
2 |
|
|
|
(1 |
) |
Balance at September 30, 2024 |
|
|
48 |
|
|
|
85 |
|
|
|
133 |
|
Foreign currency impact |
|
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
Balance at September 30, 2025 |
|
$ |
50 |
|
|
$ |
84 |
|
|
$ |
134 |
|
|
|
|
|
|
|
|
|
|
|
|||
The following table provides information regarding the Company’s intangible assets with finite lives:
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
||||||
|
|
(In millions) |
|
|||||||||||||||||||||
Developed technologies(1) |
|
$ |
41 |
|
|
$ |
(14 |
) |
|
$ |
27 |
|
|
$ |
34 |
|
|
$ |
(12 |
) |
|
$ |
22 |
|
Trademarks |
|
|
2 |
|
|
|
(1 |
) |
|
$ |
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
Customer relationships |
|
|
63 |
|
|
|
(36 |
) |
|
|
27 |
|
|
|
60 |
|
|
|
(30 |
) |
|
|
30 |
|
Total intangible assets |
|
$ |
106 |
|
|
$ |
(51 |
) |
|
$ |
55 |
|
|
$ |
96 |
|
|
$ |
(43 |
) |
|
$ |
53 |
|
Intangible assets are amortized over their estimated useful lives, which range between and twenty-five years, with a weighted average amortization period of sixteen years. Amortization expense for each of fiscal 2025, 2024 and 2023 was $6 million and is included in Cost of sales, Selling and administrative expenses and Research and technical expenses in the Consolidated Statements of Operations. Total amortization expense is estimated to be approximately $7 million each year for the next five fiscal years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 24, 2025 | Showing above |
| 2024 | Nov 20, 2024 | |
| 2023 | Nov 22, 2023 | |
| 2022 | Nov 23, 2022 | |
| 2021 | Nov 29, 2021 | |
| 2020 | Nov 25, 2020 | |
| 2019 | Nov 22, 2019 | |
| 2018 | Nov 21, 2018 | |
| 2017 | Nov 22, 2017 | |
| 2016 | Nov 23, 2016 | |
| 2015 | Nov 25, 2015 | |
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.