JABIL INCJBL
JABIL INC Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
Beginning September 1, 2024, the Company reorganized its internal structure to focus on speed, precision, and solutions, and as a result of the organizational realignment, the Company’s operating segments now consist of three segments – Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce, which are also the Company’s reportable segments. See Note 14 – “Concentration of Risk and Segment Data” to the Consolidated Financial Statements for additional information.
The Company performs a goodwill impairment analysis on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As a result of the change in reportable segments, the Company’s reporting units also changed. In connection with the preparation of the Company’s financial statements for the quarter ended November 30, 2024, the Company tested goodwill for impairment immediately before and after the reorganization. As a result of these analyses, the Company determined that goodwill was not impaired before or after the reorganization.
The Company completed its annual impairment analysis for goodwill during the fourth quarter of fiscal year 2025. A quantitative or qualitative assessment was performed, and the Company determined that the fair values of the reporting units exceeded the carrying values and that no impairment existed as of the date of the impairment analysis.
The following table presents the changes in goodwill allocated to the Company’s reportable segments during the fiscal years ended August 31, 2025 and 2024 (in millions):
| Regulated Industries | Intelligent Infrastructure | Connected Living and Digital Commerce | Total | ||||||||||||||||||||
Balance as of August 31, 2023 | $ | 447 | $ | 69 | $ | 105 | $ | 621 | |||||||||||||||
| Acquisitions and adjustments | 38 | — | (4) | 34 | |||||||||||||||||||
| Change in foreign currency exchange rates | 5 | — | 1 | 6 | |||||||||||||||||||
Balance as of August 31, 2024 | 490 | 69 | 102 | 661 | |||||||||||||||||||
Acquisitions and adjustments(1) | 178 | 7 | (12) | 173 | |||||||||||||||||||
| Change in foreign currency exchange rates | 5 | — | 2 | 7 | |||||||||||||||||||
Balance as of August 31, 2025 | $ | 673 | $ | 76 | $ | 92 | $ | 841 | |||||||||||||||
(1)Primarily in connection with the acquisitions of Pharmaceutics International, Inc. (“Pii”) and Mikros Technologies LLC (“Mikros Technologies”) during the fiscal year ended August 31, 2025. See Note 17 – “Business Acquisitions and Divestitures” for additional information.
The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in millions):
| August 31, 2025 | August 31, 2024 | ||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Impairment | Gross Carrying Amount | Accumulated Impairment | ||||||||||||||||||||
| Goodwill | $ | 1,861 | $ | 1,020 | $ | 1,681 | $ | 1,020 | |||||||||||||||
The following table presents the Company’s total purchased intangible assets as of August 31, 2025, and 2024 (in millions):
| Weighted Average Amortization Period (in years) | August 31, 2025(1) | August 31, 2024 | |||||||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||||
Contractual agreements and customer relationships | 11 | $ | 494 | $ | (292) | $ | 202 | $ | 361 | $ | (270) | $ | 91 | ||||||||||||||||||||||||||||
| Intellectual property | 8 | 240 | (182) | 58 | 198 | (181) | 17 | ||||||||||||||||||||||||||||||||||
| Finite-lived trade names | 2 | 132 | (119) | 13 | 130 | (95) | 35 | ||||||||||||||||||||||||||||||||||
| Total intangible assets | 10 | $ | 866 | $ | (593) | $ | 273 | $ | 689 | $ | (546) | $ | 143 | ||||||||||||||||||||||||||||
(1)In connection with the acquisition of Pii, the Company acquired $149 million of intangible assets, including $109 million assigned to contractual agreements and customer relationships and $38 million assigned to intellectual property. In connection with the acquisition of Mikros Technologies, the Company acquired $40 million of intangible assets, including $31 million assigned to contractual agreements and customer relationships. See Note 17 – “Business Acquisitions and Divestitures” for additional information.
Intangible asset amortization for fiscal years 2025, 2024, and 2023 was approximately $62 million, $40 million, and $33 million, respectively. The estimated future amortization expense is as follows (in millions):
| Fiscal Year Ended August 31, | |||||
2026 | $ | 50 | |||
2027 | 41 | ||||
2028 | 37 | ||||
2029 | 30 | ||||
2030 | 28 | ||||
| Thereafter | 87 | ||||
| Total | $ | 273 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 17, 2025 | Showing above |
| 2024 | Oct 28, 2024 | |
| 2023 | Oct 20, 2023 | |
| 2022 | Oct 25, 2022 | |
| 2021 | Oct 22, 2021 | |
| 2020 | Oct 22, 2020 | |
| 2019 | Oct 22, 2019 | |
| 2018 | Oct 19, 2018 | |
| 2017 | Oct 19, 2017 | |
| 2016 | Oct 20, 2016 | |
| 2015 | Oct 16, 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.