GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets
The composition of goodwill and intangible assets is as follows:
| | | | | | | | | | | | | |
| December 31, | | |
| 2025 | | 2024 | | |
| (In millions) | | |
| Goodwill | $ | 163 | | | $ | 149 | | | |
| Intangible assets with indefinite lives | | | | | |
| Trademarks | 4 | | | 4 | | | |
| Amortizable intangible assets | | | | | |
| Naming rights | 29 | | | — | | | |
| Licenses and others | 18 | | | 18 | | | |
| Non-compete agreements | 3 | | | 3 | | | |
| Customer lists | 15 | | | 14 | | | |
| Trademarks | 7 | | | 7 | | | |
| Hubs network | 4 | | | 3 | | | |
| Others | 4 | | | 3 | | | |
| Total intangible assets | 84 | | | 52 | | | |
| Accumulated amortization | (51) | | | (40) | | | |
| Total intangible assets, net | $ | 33 | | | $ | 12 | | | |
Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, 2025 |
| Brazil | | Mexico | | Argentina | | Chile | | Colombia | | Other countries | | Total |
| (In millions) |
| Balance, beginning of the year | $ | 56 | | | $ | 39 | | | $ | 14 | | | $ | 33 | | | $ | 5 | | | $ | 2 | | | $ | 149 | |
| | | | | | | | | | | | | |
| Currency translation adjustments | 6 | | | 5 | | | — | | | 2 | | | 1 | | | — | | | 14 | |
| Balance, end of the year | $ | 62 | | | $ | 44 | | | $ | 14 | | | $ | 35 | | | $ | 6 | | | $ | 2 | | | $ | 163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, 2024 |
| Brazil | | Mexico | | Argentina | | Chile | | Colombia | | Other countries | | Total |
| (In millions) |
| Balance, beginning of the year | $ | 64 | | | $ | 44 | | | $ | 10 | | | $ | 37 | | | $ | 6 | | | $ | 2 | | | $ | 163 | |
| Business acquisitions | 6 | | | 2 | | | 4 | | | — | | | — | | | — | | | 12 | |
| Currency translation adjustments | (14) | | | (7) | | | — | | | (4) | | | (1) | | | — | | | (26) | |
| Balance, end of the year | $ | 56 | | | $ | 39 | | | $ | 14 | | | $ | 33 | | | $ | 5 | | | $ | 2 | | | $ | 149 | |
Intangible assets with finite useful life
Intangible assets with finite useful life are comprised of naming rights, customer lists, non-compete and non-solicitation agreements, hubs network, acquired software licenses and other acquired intangible assets including developed technologies and trademarks. Aggregate amortization expense for intangible assets totaled $9 million, $5 million and $6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table summarizes the remaining amortization of intangible assets with finite useful life as of December 31, 2025:
| | | | | |
| For year to be ended December 31, 2026 | $ | 9 | |
| For year to be ended December 31, 2027 | 7 | |
| For year to be ended December 31, 2028 | 6 | |
| For year to be ended December 31, 2029 | 6 | |
| Thereafter | 1 | |
| $ | 29 | |
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.