INTERNATIONAL PAPER CO /NEW/IP

INTERNATIONAL PAPER CO /NEW/ Goodwill & Intangibles Disclosure

10-KFiled Feb 27, 20263 min read
GOODWILL AND OTHER INTANGIBLES
GOODWILL
The following table presents changes in the goodwill balances as allocated to each reportable business segment for
the years ended December 31, 2025 and 2024: 
In millions
Packaging
Solutions
North America
Packaging
Solutions
EMEA
Total
Balance as of December 31, 2023
Goodwill
$3,337
$76
  
$3,413
Accumulated impairment losses
(296)
(76)
  
(372)
3,041
—
3,041
Currency translation
(3)
—
(3)
Balance as of December 31, 2024
Goodwill
3,334
  
76
3,410
Accumulated impairment losses
(296)
  
(76)
(372)
3,038
  
—
3,038
Goodwill additions (a)
873
3,462
4,335
Goodwill reductions (b)
—
(2,467)
(2,467)
Currency translation
(2)
422
420
Balance as of December 31, 2025
Goodwill
3,968
3,960
  
7,928
Accumulated impairment losses
(59)
(2,543)
  
(2,602)
Total
$3,909
$1,417
  
$5,326
    (a) Reflects the acquisition of DS Smith. See Note 7 - Acquisitions for further details.
(b) Reflects PS EMEA Impairment losses and PS NA write-offs of previously impaired goodwill of $237 million and accumulated
    impairment losses of $(237) million.
The Company completed its annual goodwill impairment testing for the Packaging Solutions North America (PS NA)
and Packaging Solutions EMEA (PS EMEA) reporting units as of October 1, 2025. Based on this assessment, no
impairment was identified for either reporting unit.
During the fourth quarter of 2025, the Company identified a triggering event as part of its annual strategic review,
driven by updated macroeconomic and industry outlooks, as well as the Company’s evaluation of a potential
separation into two independent, publicly traded companies. In response, the Company performed a quantitative
goodwill impairment test for the PS NA and PS EMEA reporting units, comparing each reporting unit’s carrying value
to its estimated fair value.
Estimated fair values were determined using discounted future cash flows and market multiples, which use inputs
that are classified within Level 2 and Level 3 of the fair value hierarchy. The discounted cash flow approach requires
significant management judgments, including assumptions related to forecasts of future revenues, operating
margins and discount rates. The market‑multiple approach similarly requires significant assumptions regarding
adjusted EBITDA multiples.
The quantitative impairment test concluded that the carrying amount of the PS EMEA reporting unit exceeded its
estimated fair value. As a result, the Company recorded a goodwill impairment charge of approximately
$2.47 billion, which is reflected in Impairment of goodwill in the accompanying consolidated statement of operations.
The carrying amount of the PS NA reporting unit did not exceed its estimated fair value, and no impairment was
recorded for that reporting unit.
OTHER INTANGIBLES
Identifiable intangible assets are recorded in Deferred Charges and Other Assets in the accompanying consolidated
balance sheets and comprised the following:
  
2025
2024
In millions at December 31
Gross
Carrying
Amount
Accumulated
Amortization
Net 
Intangible
Assets
Gross
Carrying
Amount
Accumulated
Amortization
Net
Intangible
Assets
Customer relationships and lists
$4,063
$535
$3,528
$394
$329
$65
Trade names
398
21
377
—
—
—
Software
142
39
103
(a)
12
12
—
Other
102
67
35
68
61
7
Total
$4,705
$662
$4,043
$474
$402
$72
(a) Of this balance, $76 million has been placed in service and $27 million is in development.
The Company recognized the following amounts as amortization expense related to intangible assets: 
In millions
2025
2024
2023
Amortization expense related to intangible assets
$259
$25
$25
Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding
years is as follows:
In millions
Amortization Expense
2026
$286
2027
267
2028
263
2029
237
2030
232
Thereafter
2,737
Total
$4,022

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 21, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 19, 2020
2018Feb 20, 2019
2017Feb 22, 2018
2016Feb 22, 2017
2015Feb 25, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew Standards