Goodwill and Other Identifiable Intangible Assets
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| Goodwill | | | | |
| ($ in millions) | Global Architectural Coatings | Performance Coatings | Industrial Coatings | Total |
January 1, 2024 | $2,996 | | $1,913 | | $1,206 | | $6,115 | |
| Acquisitions, including purchase accounting adjustments | — | | 2 | | — | | 2 | |
| Divestitures | — | | — | | (2) | | (2) | |
| Foreign currency impact and other | (308) | | (61) | | (56) | | (425) | |
| | | | |
| December 31, 2024 | $2,688 | | $1,854 | | $1,148 | | $5,690 | |
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| Foreign currency impact and other | 320 | | 60 | | 79 | | 459 | |
| December 31, 2025 | $3,008 | | $1,914 | | $1,227 | | $6,149 | |
In the fourth quarter, the Company tests the carrying value of goodwill for impairment, as discussed in Note 1. “Summary of Significant Accounting Policies.” In both 2025 and 2024, the annual impairment testing of goodwill did not result in impairment of any of the Company’s reporting units. In conjunction with the 2023 assessment, the Company determined that the estimated fair value of the traffic solutions reporting unit was less than its carrying value, resulting in recognition of a goodwill impairment charge of $158 million in Impairment and other related charges, net in the accompanying consolidated statements of income. The fair value of the traffic solutions reporting unit was estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model included projected future revenues, a discount rate, operating cash flows, capital expenditures, and a tax rate. The decline in the fair value of the traffic solutions reporting unit compared to prior periods was primarily due to an increase in the weighted average cost of capital (discount rate assumption) reflecting the current interest rate environment. In addition, the fair value was impacted by a decline in the reporting unit’s long-term cash generation forecast due to the highly inflationary environment in Argentina and the fourth quarter 2023 divestitures of its European and Australian businesses.
As of December 31, 2025, accumulated goodwill impairment losses totaled $158 million, all of which relates to the Performance Coatings reportable segment.
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| Identifiable Intangible Assets |
| | December 31, 2025 | | December 31, 2024 |
| ($ in millions) | Gross Carrying Amount | Accumulated Amortization | Net | | Gross Carrying Amount | Accumulated Amortization | Net |
| Indefinite-Lived Identifiable Intangible Assets |
| Trademarks | $1,274 | | $— | | $1,274 | | | $1,123 | | $— | | $1,123 | |
| Definite-Lived Identifiable Intangible Assets | | | | | | | |
| Acquired technology | $819 | | ($720) | | $99 | | | $800 | | ($666) | | $134 | |
| Customer-related | 1,782 | | (1,293) | | 489 | | | 1,656 | | (1,106) | | 550 | |
| Trade names | 299 | | (191) | | 108 | | | 276 | | (162) | | 114 | |
| Other | 46 | | (45) | | 1 | | | 43 | | (42) | | 1 | |
| Total Definite Lived Intangible Assets | $2,946 | | ($2,249) | | $697 | | | $2,775 | | ($1,976) | | $799 | |
| Total Identifiable Intangible Assets | $4,220 | | ($2,249) | | $1,971 | | | $3,898 | | ($1,976) | | $1,922 | |
In the fourth quarter, the Company tests the carrying value of indefinite-lived trademarks for impairment, as discussed in Note 1, “Summary of Significant Accounting Policies.” In both 2025 and 2024, the annual impairment testing review of indefinite-lived intangibles did not result in an impairment. In conjunction with the 2023 annual impairment test, the Company determined that the estimated fair value of certain trademarks in the Global Architectural Coatings segment were less than the carrying value, resulting in recognition of impairment charges of $2 million in Impairment and other related charges, net in the accompanying consolidated statement of income.
Aggregate amortization expense was $125 million, $132 million and $154 million in 2025, 2024 and 2023, respectively. In the fourth quarter 2023, the Company recognized accelerated amortization expense of $6 million related to the exit of a non-core business.
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| ($ in millions) | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter |
| Estimated future amortization expense | $104 | | $84 | | $77 | | $71 | | $62 | | $299 | |