DuPont de Nemours, Inc.DD
DuPont de Nemours, Inc. Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS
The following table summarizes changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024:
| Healthcare & Water Technologies | Diversified Industrials | Total | |||||||||
| In millions | |||||||||||
| Balance at December 31, 2023 | $ | 4,177 | $ | 3,480 | $ | 7,657 | |||||
Goodwill recognized for Donatelle Acquisition 1 | 114 | — | 114 | ||||||||
Goodwill recognized for Spectrum Acquisition 2 | (3) | (1) | (4) | ||||||||
| Currency Translation Adjustment | (105) | (102) | (207) | ||||||||
| Other | 1 | — | 1 | ||||||||
| Balance at December 31, 2024 | $ | 4,184 | $ | 3,377 | $ | 7,561 | |||||
Goodwill recognized for Sinochem Acquisition3 | 7 | — | 7 | ||||||||
| Currency Translation Adjustment | 208 | 139 | 347 | ||||||||
| Balance at December 31, 2025 | $ | 4,399 | $ | 3,516 | $ | 7,915 | |||||
1.On July 28, 2024, DuPont completed the acquisition of Donatelle, which is primarily included in the Healthcare & Water Technologies segment. See Note 3 for additional information.
2.In the third quarter 2024, the Company finalized the working capital settlements which impacted the residual goodwill recorded. See Note 3 for additional information.
3.In the fourth quarter of 2025, DuPont completed the Sinochem Acquisition, which is included in the Healthcare & Water Technologies segment. See Note 3 for additional information.
The Company tests goodwill for impairment annually during the fourth quarter, or more frequently when events or changes in circumstances indicate that the fair value is below carrying value. As a result of the related acquisition method of accounting in connection with the DWDP Merger, EIDP’s assets and liabilities were measured at fair value resulting in increases to the Company’s carrying value of goodwill and other intangible assets that are heritage to EIDP assets, including the Aramids reporting unit. The fair value valuation increased the risk that any declines in financial projections, including changes to key assumptions, could have a material, negative impact on the fair value of the Company’s reporting units and assets, and therefore
could result in an impairment. The Company’s significant assumptions in these analyses include projected revenue growth, EBITDA margins, weighted average costs of capital and terminal growth rates for the income approach and projected EBITDA and derived multiples from comparable market transactions for the market approach.
The Company's estimates of future cash flows are based on current regulatory and economic climates, recent operating results, and planned business strategies. Should future cash flows differ materially from the Company's estimate, or should there be a future market downturn, the Company may be required to perform additional impairment analyses that could result in a non-cash goodwill impairment charge.
In connection with the Q1 2025 Segment Realignment, the Company realigned its operating and reportable segments which changed the composition of certain reporting units. During the first quarter 2025, the associated reporting units' goodwill and indefinite-lived intangible assets were assessed for impairment before and after the Q1 2025 Segment Realignment, as described below.
Prior to the Q1 2025 Segment Realignment, the Company performed qualitative testing on five of its reporting units and performed quantitative testing on three of its reporting units. The qualitative evaluation is an assessment of factors, including reporting unit or asset specific operating results and cost factors, as well as industry, market and macroeconomic conditions, to determine whether it is more likely than not (more than 50 percent) that the fair value of a reporting unit or asset is less than the respective carrying amount, including goodwill. The results of the qualitative assessments indicated that it was not more likely than not that the fair values of the five reporting units were less than their carrying values. The Protection reporting unit (aggregation of the Safety and Shelter businesses), formerly within the Water & Protection segment, and the Industrial Solutions reporting unit and the Donatelle reporting unit, formerly within the Electronics & Industrial segment, were tested by applying the quantitative assessment. The Company used a combination of discounted cash flow models (a form of the income approach) and the Guideline Public Company Method (a form of the market approach). No impairments were identified.
After the Q1 2025 Segment Realignment, the Company assessed and re-defined certain reporting units, including reallocation of goodwill on a relative fair value basis, as applicable, to reporting units impacted. The Company performed quantitative testing on all six reporting units. For the quantitative assessments, the Company used a combination of discounted cash flow models (a form of the income approach) and the Guideline Public Company Method (a form of the market approach). No impairments were identified except for the Aramids reporting unit (aggregation of the Nomex® and Kevlar®), formerly within the Protection reporting unit in the Water & Protection segment and now presented as discontinued operations.
As a result of the analysis performed after the Q1 2025 Segment Realignment, the Company concluded that the carrying amount of the Aramids reporting unit exceeded its fair value resulting in a non-cash goodwill impairment charge of $768 million. Due to the Aramids Divestiture this charge is now reflected within discontinued operations. As a result of the first quarter 2025 impairment charges, there is no remaining goodwill within the Aramids reporting unit.
As part of its annual impairment test at October 1, 2025, the Company performed qualitative testing on three of its reporting units and performed quantitative testing on two of its reporting units. The qualitative evaluation is an assessment of factors, including reporting unit or asset specific operating results and cost factors, as well as industry, market and macroeconomic conditions, to determine whether it is more likely than not (more than 50 percent) that the fair value of a reporting unit or asset is less than the respective carrying amount, including goodwill. The results of the qualitative assessments indicated that it is not more likely than not that the fair values of the three reporting units were less than their carrying values. The other two reporting units were tested by applying the quantitative assessment. The Company used a combination of discounted cash flow models (a form of the income approach) and the Guideline Public Company Method (a form of the market approach). No impairments were identified as the estimated fair value of each reporting unit exceeded its carrying value. Should adverse impacts from macroeconomic conditions, or other events occur indicating that the estimated future cash flows of the reporting unit have declined and the reporting unit is unable to meet or exceed its projections, the Company may be required to record future non-cash impairment charges related to goodwill.
Effective as of January 1, 2024, Electronics & Industrial realigned certain of its product lines making up its lines of business (Industrial Solutions, Interconnect Solutions and Semiconductor Technologies). During the first quarter of 2024, the realignment of the businesses within Electronics & Industrial served as a triggering event requiring the Company to perform an impairment analysis related to goodwill carried by certain reporting units as of January 1, 2024, prior to the realignment. As part of the realignment, the Company assessed and re-defined certain reporting units effective January 1, 2024, including reallocation of goodwill on a relative fair value basis, as applicable, to reporting units impacted. Goodwill impairment analyses were then performed for reporting units impacted in the Electronics and Industrial segment and no impairments were identified. The fair value of each reporting unit tested was estimated using a combination of a discounted cash flow model and market approach. The Company’s assumptions in estimating fair value include projected revenue growth, gross margins, selling, administrative, research and development expenses ("SARD"), capital expenditures, weighted average cost of capital, terminal growth rates, and the tax rate for the income approach and projected EBITDA and derived multiples from comparable market transactions for the market approach.
In connection with the preparation of the full year 2023 financial statements, the continuation of previously disclosed challenging macroeconomic environment in the residential, non-residential, and the repair and remodel construction markets, as well as incremental channel inventory destocking in healthcare and industrial end-markets served as a triggering event requiring the Company to perform an impairment analysis of the goodwill associated with its Protection reporting unit as of December 31, 2023. As a result of the analysis performed, the Company concluded that the carrying amount of the Protection reporting unit exceeded its fair value resulting in a non-cash goodwill impairment charge from continuing operations of $668 million, which is recorded within “Goodwill impairment charge” on the Consolidated Statements of Operations for the year ended December 31, 2023.
Other Intangible Assets
The gross carrying amounts and accumulated amortization of other intangible assets by major class are as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||
| In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | ||||||||||||||
| Intangible assets with finite lives: | ||||||||||||||||||||
| Developed technology | $ | 1,004 | $ | (574) | $ | 430 | $ | 1,158 | $ | (647) | $ | 511 | ||||||||
Trademarks/tradenames | 546 | (305) | 241 | 546 | (271) | 275 | ||||||||||||||
| Customer-related | 3,155 | (1,315) | 1,840 | 3,059 | (1,090) | 1,969 | ||||||||||||||
| Other | 31 | (9) | 22 | 27 | (7) | 20 | ||||||||||||||
| Total other intangible assets with finite lives | $ | 4,736 | $ | (2,203) | $ | 2,533 | $ | 4,790 | $ | (2,015) | $ | 2,775 | ||||||||
| Intangible assets with indefinite lives: | ||||||||||||||||||||
Trademarks/tradenames | 403 | — | 403 | 403 | — | 403 | ||||||||||||||
| Total other intangible assets with indefinite lives | $ | 403 | $ | — | $ | 403 | $ | 403 | $ | — | $ | 403 | ||||||||
| Total | $ | 5,139 | $ | (2,203) | $ | 2,936 | $ | 5,193 | $ | (2,015) | $ | 3,178 | ||||||||
During the fiscal year 2025, the Company retired fully amortized assets of $155 million of developed technology intangible assets.
During the fiscal year 2024, the Company retired fully amortized assets of $35 million of developed technology intangible assets.
The following table provides the net carrying value of other intangible assets:
| Net Intangibles by Segment | December 31, 2025 | December 31, 2024 | ||||||
| In millions | ||||||||
| Healthcare & Water Technologies | $ | 1,824 | $ | 1,962 | ||||
| Diversified Industrials | 1,112 | 1,216 | ||||||
| Total | $ | 2,936 | $ | 3,178 | ||||
Total estimated amortization expense for the next five fiscal years is as follows:
| Estimated Amortization Expense | |||||
| In millions | |||||
| 2026 | $ | 272 | |||
| 2027 | $ | 258 | |||
| 2028 | $ | 235 | |||
| 2029 | $ | 217 | |||
| 2030 | $ | 209 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 11, 2019 | |
| 2017 | Feb 15, 2018 | |
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.