Note 11. Goodwill and Other Intangible Assets
Goodwill and other intangible assets with indefinite lives are not amortized, but instead are assessed for impairment, at least annually. The carrying amount of goodwill was $915.9 million and $913.8 million as of December 31, 2025 and December 31, 2024, respectively. The net change in goodwill since December 31, 2025 was attributable to the effects of foreign exchange.
The balance of goodwill by reporting unit and the activity occurring in the past two fiscal years is as follows:
| | | | | | | | | | | | |
| | | | Consumer & | | | | Engineered | | | | | |
| (in millions of dollars) | | | Specialties | | | | Solutions | | | | Consolidated | |
| Balance at December 31, 2023 | | $ | 345.2 | | | $ | 568.4 | | | $ | 913.6 | |
| | | | | | | | | | | | | |
| Change in goodwill relating to: | | | | | | | | | | | | |
| Foreign exchange translation | | | 0.5 | | | | (0.3 | ) | | | 0.2 | |
| Total Changes | | $ | 0.5 | | | $ | (0.3 | ) | | $ | 0.2 | |
| | | | | | | | | | | | | |
| Balance at December 31, 2024 | | $ | 345.7 | | | $ | 568.1 | | | $ | 913.8 | |
| | | | | | | | | | | | | |
| Change in goodwill relating to: | | | | | | | | | | | | |
| Foreign exchange translation | | | 1.5 | | | | 0.6 | | | | 2.1 | |
| Total Changes | | $ | 1.5 | | | $ | 0.6 | | | $ | 2.1 | |
| | | | | | | | | | | | | |
| Balance at December 31, 2025 | | $ | 347.2 | | | $ | 568.7 | | | $ | 915.9 | |
Acquired intangible assets subject to amortization as of December 31, 2025 and December 31, 2024 were as follows:
| | | | | | | | | | | | | | | | | | | |
| | | | | | December 31, 2025 | | December 31, 2024 |
| | | | | | (in millions of dollars) | | (in millions of dollars) |
| | | Weighted Average | | | | Gross | | | | | | | | Gross | | | | | |
| | | Useful Life | | | | Carrying | | | | Accumulated | | | | Carrying | | | | Accumulated | |
| | (Years) | | | | Amount | | | | Amortization | | | | Amount | | | | Amortization | |
| Tradenames | | 34 | | | $ | 221.4 | | | $ | 67.6 | | | $ | 221.5 | | | $ | 63.0 | |
| Technology | | 20 | | | | 18.8 | | | | 15.5 | | | | 18.8 | | | | 15.1 | |
| Patents and trademarks | | 19 | | | | 6.4 | | | | 6.4 | | | | 6.4 | | | | 6.4 | |
| Customer relationships | | 21 | | | | 80.4 | | | | 28.8 | | | | 77.5 | | | | 21.6 | |
| | | 29 | | | $ | 327.0 | | | $ | 118.3 | | | $ | 324.2 | | | $ | 106.1 | |
The weighted average amortization period of the acquired intangible assets subject to amortization is approximately 29 years. Amortization expense was approximately $11.4 million, $12.1 million, and $12.7 million for the years ended December 31, 2025, 2024, and 2023, respectively and is recorded within the marketing and administrative expenses line within the Consolidated Statements of Income (Loss). The estimated amortization expense is as follows: 2026 - $11.5 million; 2027 - $11.5 million; 2028 - $11.5 million; 2029 - $11.5 million; 2030 - $11.5 million; and $151.2 million thereafter.
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.