INTERNATIONAL FLAVORS & FRAGRANCES INCIFF
INTERNATIONAL FLAVORS & FRAGRANCES INC Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
Movements in goodwill attributable to each reportable segment during the years ended December 31, 2024 and 2025 were as follows:
| (DOLLARS IN MILLIONS) | Nourish | Taste | Food Ingredients | Scent | Health & Biosciences | Pharma Solutions | Total | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 3,489 | $ | — | $ | — | $ | 1,490 | $ | 4,391 | $ | 1,265 | $ | 10,635 | |||||||||||||||||||||||||||
Transferred to assets held for sale(1) | (55) | — | — | — | — | (1,248) | (1,303) | ||||||||||||||||||||||||||||||||||
Reduction from business divestitures(2) | (10) | — | — | — | — | — | (10) | ||||||||||||||||||||||||||||||||||
| Foreign Exchange | (104) | — | — | (25) | (96) | (17) | (242) | ||||||||||||||||||||||||||||||||||
| Other | (5) | — | — | — | — | — | (5) | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 3,315 | — | — | 1,465 | 4,295 | — | 9,075 | ||||||||||||||||||||||||||||||||||
| Reallocation of goodwill in segment reorganization | (3,315) | 2,176 | 1,153 | — | (14) | — | — | ||||||||||||||||||||||||||||||||||
Transferred to assets held for sale(1) | — | (6) | — | — | — | — | (6) | ||||||||||||||||||||||||||||||||||
Reduction from business divestitures(2) | — | (8) | — | — | — | — | (8) | ||||||||||||||||||||||||||||||||||
| Impairment | — | — | (1,153) | — | — | — | (1,153) | ||||||||||||||||||||||||||||||||||
| Foreign exchange | — | 134 | — | 43 | 184 | — | 361 | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | — | $ | 2,296 | $ | — | $ | 1,508 | $ | 4,465 | $ | — | $ | 8,269 | |||||||||||||||||||||||||||
_______________________
(1)For 2025, related to the Tobacco Flavoring business. For 2024, related to the Pharma Solutions disposal group and the Nitrocellulose business. The Company recognized $64 million of impairment related to the Pharma Solutions disposal group classified as held for sale as of December 31, 2024. See Note 3 for additional information.
(2)For 2025, relates to the divestiture of the Rene Laurent business. For 2024, relates to the divestiture of the Flavors & Essences UK business. See Note 3 for additional information.
The goodwill balance at December 31, 2025 was net of accumulated goodwill impairment charges of $6.026 billion, which included $1.153 billion related to the Food Ingredients reporting unit, $2.623 billion related to the previous Nourish reporting unit, and $2.250 billion related to the Health & Biosciences reporting unit.
The goodwill balance at December 31, 2024 and December 31, 2023 was net of accumulated goodwill impairment charges of $4.873 billion, which included $2.623 billion related to the previous Nourish reporting unit and $2.250 billion related to the Health & Biosciences reporting unit.
For the interim and annual impairment assessments, the Company performed quantitative impairment assessments by comparing the fair value of the reporting units with their carrying amounts.
The Company assessed the fair value of the reporting units using an income approach for all impairment assessments performed. Under the income approach, the Company determined the fair value of the reporting units by using a discounted cash flow method at a rate of return that reflects the relative risk of the projected future cash flows of each reporting unit, as well as a terminal value. The Company used the most current actual and forecasted operating data available. Key estimates and assumptions used in these valuations include revenue growth rates, gross margins, adjusted operating EBITDA margins, forecasted capital expenditures, terminal growth rates and discount rates.
In performing the quantitative impairment assessment, the Company determined that the fair value of the reporting units exceeded their carrying values and determined that there was no impairment of goodwill in these reporting units as of November 30, 2025. Based on the quantitative impairment assessment performed, the Taste, Fragrance Compounds and Fragrance Ingredients reporting units had substantial headroom, as fair value exceeded carrying value by a wide margin, while the fair value of the Health & Biosciences reporting unit exceeded carrying value by 9%. While management believes that the assumptions used in the impairment assessment were reasonable, changes in key assumptions, including lower revenue growth,
operating margin, terminal growth rates or increase in discount rates could result in a future impairment. Such impairment could have a material effect on our Consolidated Statements of Operations and Balance Sheets.
Effective January 1, 2025, the Nourish operating segment was reorganized into two new operating segments: Taste and Food Ingredients, which also represent reporting units. As a result of this change in management reporting, goodwill related to the Nourish reporting unit was allocated between the two new reporting units and interim quantitative goodwill impairment assessments were performed both prior to and subsequent to the change. As a result, the Company determined that the carrying amount of the Food Ingredients reporting unit exceeded its estimated fair value and recognized an impairment charge of $1.153 billion, which is reflected in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) during the year ended December 31, 2025.
During 2024, the Company determined that goodwill impairment triggering events occurred for its Pharma Solutions disposal group. The Company determined that the carrying value of the disposal group exceeded its fair value and recorded an impairment charge of $64 million in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2024.
During 2023, the Company determined that goodwill impairment triggering events occurred for its Nourish reporting unit. The Company determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2023. The primary drivers of the impairment charge were a decrease in fair value due to declines in projections of the reporting unit, impacts of continued inflation and increases in interest rates.
Other Intangible Assets
Other intangible assets, net consisted of the following amounts:
| December 31, | |||||||||||
| (DOLLARS IN MILLIONS) | 2025 | 2024 | |||||||||
| Asset Type | |||||||||||
| Customer relationships | $ | 7,200 | $ | 7,004 | |||||||
| Technological know-how | 1,999 | 1,937 | |||||||||
| Trade names & patents | 285 | 268 | |||||||||
| Other | 24 | 25 | |||||||||
| Total carrying value | 9,508 | 9,234 | |||||||||
| Accumulated Amortization | |||||||||||
| Customer relationships | (2,198) | (1,765) | |||||||||
| Technological know-how | (1,087) | (875) | |||||||||
| Trade names & patents | (159) | (128) | |||||||||
| Other | (21) | (21) | |||||||||
| Total accumulated amortization | (3,465) | (2,789) | |||||||||
| Other intangible assets, net | $ | 6,043 | $ | 6,445 | |||||||
Amortization
Amortization expense was $568 million for the year ended December 31, 2025, $610 million for the year ended December 31, 2024 and $680 million for the year ended December 31, 2023. Amortization expense for the next five years is expected to be as follows:
| December 31, | |||||||||||||||||||||||||||||
| (DOLLARS IN MILLIONS) | 2026 | 2027 | 2028 | 2029 | 2030 | ||||||||||||||||||||||||
| Estimated future intangible amortization expense | $ | 582 | $ | 494 | $ | 481 | $ | 444 | $ | 440 | |||||||||||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Mar 1, 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.