GREIF, INCGEF
GREIF, INC Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS
The following table summarizes the changes in the carrying amount of goodwill by reportable segment for the years ended October 31, 2024 and 2023:
| (in millions) | Global Industrial Packaging | Paper Packaging & Services | Total | ||||||||||||||
| Balance at October 31, 2022 | $ | 696.6 | $ | 767.9 | $ | 1,464.5 | |||||||||||
| Goodwill acquired | 175.4 | 60.1 | 235.5 | ||||||||||||||
| Goodwill allocated to divestitures and businesses held for sale | — | (22.5) | (22.5) | ||||||||||||||
| Currency translation | 15.6 | (0.1) | 15.5 | ||||||||||||||
| Balance at October 31, 2023 | $ | 887.6 | $ | 805.4 | $ | 1,693.0 | |||||||||||
| Goodwill acquired | 278.5 | — | 278.5 | ||||||||||||||
| Goodwill allocated to divestitures | (26.1) | — | (26.1) | ||||||||||||||
| Currency translation | 8.3 | — | 8.3 | ||||||||||||||
| Balance at October 31, 2024 | $ | 1,148.3 | $ | 805.4 | $ | 1,953.7 | |||||||||||
The Company reviews goodwill by reporting unit and indefinite-lived intangible assets for impairment as required by ASC 350, “Intangibles – Goodwill and Other,” either annually on August 1, or whenever events and circumstances indicate impairment may have occurred. A reporting unit is the operating segment, or a business unit one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. The components are aggregated into reporting units for purposes of goodwill impairment testing to the extent they share similar qualitative and quantitative characteristics.
The Company performed its annual goodwill impairment test as of August 1, 2024. The Company’s goodwill reporting units either passed the Step 0 test or the fair value of the Company’s goodwill reporting units exceeded the carrying value, resulting in no impairment. Discount rates, revenue growth rates and gross margins are the assumptions that are most sensitive and susceptible to change as they require significant management judgment. In addition, certain future events and circumstances, including deterioration of market conditions, higher cost of capital, a decline in actual and expected consumption and demand, could result in changes to these assumptions and judgments. A revision of these assumptions could cause the fair value of the reporting unit to fall below its respective carrying value. As for all of the Company’s reporting units, if in future years, the reporting unit’s actual results are not consistent with the Company’s estimates and assumptions used to calculate fair value, the Company may be required to recognize material impairments to goodwill.
The following table summarizes the carrying amount of net intangible assets by class as of October 31, 2024 and 2023:
| (in millions) | Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | ||||||||||||||
| October 31, 2024: | |||||||||||||||||
| Indefinite lived: | |||||||||||||||||
| Trademarks and trade names | $ | 7.9 | $ | — | $ | 7.9 | |||||||||||
| Definite lived: | |||||||||||||||||
| Customer relationships | 1,188.0 | 332.1 | 855.9 | ||||||||||||||
| Trademarks and trade names | 54.8 | 18.8 | 36.0 | ||||||||||||||
| Developed technology | 38.9 | 3.3 | 35.6 | ||||||||||||||
| Other | 2.1 | 0.4 | 1.7 | ||||||||||||||
| Total | $ | 1,291.7 | $ | 354.6 | $ | 937.1 | |||||||||||
| October 31, 2023: | |||||||||||||||||
| Indefinite lived: | |||||||||||||||||
| Trademarks and trade names | $ | 7.9 | $ | — | $ | 7.9 | |||||||||||
| Definite lived: | |||||||||||||||||
| Customer relationships | 1,031.1 | 283.2 | 747.9 | ||||||||||||||
| Trademarks and trade names | 44.3 | 9.6 | 34.7 | ||||||||||||||
| Other | 2.1 | 0.4 | 1.7 | ||||||||||||||
| Total | $ | 1,085.4 | $ | 293.2 | $ | 792.2 | |||||||||||
Gross increased by $206.3 million for the year ended October 31, 2024. The increase was attributable to $231.6 million additional assets from acquisitions and $5.0 million of currency fluctuations, which was offset by the write-off of $30.3 million fully amortized assets.
Amortization expense was $91.5 million, $71.9 million and $58.2 million for the years ended October 31, 2024, 2023 and 2022, respectively. Amortization expense for the next five years is expected to be $96.8 million in 2025, $96.6 million in 2026, $96.5 million in 2027, $91.9 million in 2028 and $87.6 million in 2029.
Definite lived intangible assets for the periods presented are subject to amortization and are being amortized using the straight-line method over periods that are contractually or legally determined, or over the period a market participant would benefit from the asset. Indefinite lived intangibles of approximately $7.9 million as of October 31, 2024, related primarily to the Tri-Sure trademark and trade names related to Box Board and Pachmas, are not amortized, but rather are tested for impairment at least annually.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Dec 23, 2024 | Showing above |
| 2023 | Dec 18, 2023 | |
| 2022 | Dec 16, 2022 | |
| 2021 | Dec 16, 2021 | |
| 2020 | Dec 17, 2020 | |
| 2019 | Dec 18, 2019 | |
| 2018 | Dec 20, 2018 | |
| 2017 | Dec 20, 2017 | |
| 2016 | Dec 21, 2016 | |
| 2015 | Dec 21, 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.