PACKAGING CORP OF AMERICA Goodwill & Intangibles Disclosure
Goodwill
Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At December 31, 2025 and 2024, we had $1,372.3 million and $922.4 million of goodwill recorded in our Packaging segment, respectively, which represents the entire goodwill balance reported on our Consolidated Balance Sheets. We did not recognize any adjustments to goodwill during the year ended December 31, 2024.
Changes in the carrying amount of our goodwill are as follows (dollars in millions):
|
|
Goodwill |
|
|
Balance at January 1, 2024 |
|
$ |
922.4 |
|
Balance at December 31, 2024 |
|
|
922.4 |
|
Acquisitions (a) |
|
|
449.9 |
|
Balance at December 31, 2025 |
|
$ |
1,372.3 |
|
Intangible Assets
Intangible assets are primarily comprised of customer relationships and trademarks and trade names. The weighted average useful life, gross carrying amount, and accumulated amortization of our intangible assets were as follows (dollars in millions):
|
|
As of December 31, 2025 |
|
|
As of December 31, 2024 |
|
||||||||||||||||||
|
|
Weighted |
|
|
Gross |
|
|
Accumulated |
|
|
Weighted |
|
|
Gross |
|
|
Accumulated |
|
||||||
Customer relationships (b) |
|
|
12.4 |
|
|
$ |
966.0 |
|
|
$ |
407.2 |
|
|
|
6.6 |
|
|
$ |
546.0 |
|
|
$ |
362.4 |
|
Trademarks and trade names (b) |
|
|
4.8 |
|
|
|
81.3 |
|
|
|
37.8 |
|
|
|
6.0 |
|
|
|
41.3 |
|
|
|
33.0 |
|
Other |
|
|
0.9 |
|
|
|
4.4 |
|
|
|
4.4 |
|
|
|
1.9 |
|
|
|
4.4 |
|
|
|
4.4 |
|
Total intangible assets (excluding goodwill) |
|
|
11.8 |
|
|
$ |
1,051.7 |
|
|
$ |
449.4 |
|
|
|
6.6 |
|
|
$ |
591.7 |
|
|
$ |
399.8 |
|
Amortization expense was $49.6 million, $37.7 million, and $38.3 million for the years ended December 31, 2025, 2024, and 2023, respectively. Estimated amortization expense of intangible assets over the next five years is expected to approximate $73.5 million (2026), $70.7 million (2027), $63.1 million (2028), $49.0 million (2029) and $46.3 million (2030).
Impairment Testing
We test goodwill for impairment annually in the fourth quarter or sooner if events or changes in circumstances indicate that the carrying value of the asset may exceed fair value. Additionally, when we experience changes to our business or operating environment, we evaluate the remaining useful lives and recoverability of our finite-lived purchased intangible assets to determine whether any adjustments to the useful lives or impairment are necessary. We completed our annual qualitative assessment in the fourth quarter, and there was no indication of goodwill or intangible asset impairment.
Want the next PACKAGING CORP OF AMERICA goodwill & intangibles disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment PACKAGING CORP OF AMERICA's next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2017 | |
| 2015 | Feb 26, 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.