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Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill
Engineered
Materials		Acetyl
Chain		Total
(In $ millions)
As of December 31, 2022
6,775 367 7,142 
Acquisitions (Note 4)
(107)— (107)
Dispositions (Note 4)
(80)— (80)
Exchange rate changes14 8 22 
As of December 31, 2023(1)
6,602 375 6,977 
Impairment losses(1,517)— (1,517)
Exchange rate changes(60)(13)(73)
As of December 31, 2024(1)
5,025 362 5,387 
______________________________
(1)Includes accumulated impairment losses of $1.5 billion in the Engineered Materials segment as of December 31, 2024. There were no accumulated impairment losses as of December 31, 2023.
The Company assesses the recoverability of the carrying amount of its reporting unit goodwill either qualitatively or quantitatively annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable.
During the three months ended September 30, 2024, the Company completed qualitative evaluations on its reporting units, with the exception of the engineered materials reporting unit, and concluded that it was more likely than not that the fair value of these reporting units exceeded their carrying value. The engineered materials reporting unit was tested quantitatively as the
Company experienced decreased demand, identified near-term negative trends in the automotive and industrial end-markets and experienced other challenging current macroeconomic conditions during the three months ended September 30, 2024.
Based on the quantitative test, the estimated fair value of the engineered materials reporting unit exceeded the carrying amount of its underlying assets. Therefore, the Company did not record an impairment loss to goodwill during the nine months ended September 30, 2024. Although no impairment of the engineered materials reporting unit was identified during the nine months ended September 30, 2024, the estimated fair value exceeded its carrying value by less than 10% as of September 30, 2024.
During the three months ended December 31, 2024, the Company experienced a significant and sustained decrease in the Company's share price. Further, due to extended weakness in the macroeconomic environment, specifically the auto and industrial end-markets, which deepened general demand softness during the three months ended December 31, 2024, thereby impacting pricing and volume, the Company updated its engineered materials reporting unit forecast model for the 2025 fiscal year which showed additional deterioration in the projected financial results for the 2025 fiscal year compared to the analyses prepared during the three months ended September 30, 2024. While the long-term projections beyond 2025 include recovery, the lower projections in 2025 do have an impact on the forecast model beyond 2025 by applying forecasted growth rates to a lower anticipated 2025 base revenue. The updated 2025 projections continue to reflect industry wide challenges including demand softness across the majority of end uses resulting in lower pricing. Based on the sustained decrease in the share price and updated projections, the Company determined that there were indicators that the engineered materials reporting unit's goodwill may be impaired and, accordingly, performed an interim quantitative test of the engineered materials reporting unit during the three months ended December 31, 2024. The results of the test determined that the carrying amount of the engineered materials reporting unit exceeded its estimated fair value primarily due to the downward adjustments in the forecast model, as well as an increase in the discount rate. As such, the Company recorded a non-cash goodwill impairment loss of $1.5 billion in Other charges (gains), net (Note 24) within the Engineered Materials segment.
The quantitative evaluations of the engineered materials reporting unit were performed using an equal weighting of the income approach based on the discounted estimated future cash flows of the reporting unit and market approach using the guideline public company method. The key assumptions used in the discounted cash flow valuation model include the discount rate, revenue growth rate, tax rate, cash flow projections and terminal value rate. The discount rates were based on market participant data, including the Company's weighted average cost of capital adjusted for risks specific to the reporting unit. The revenue growth rates and cash flow projections were based on historical trends and expected growth drivers such as macroeconomic trends in the industries and territories in which the reporting unit operates. The tax rates considered the operating structure of the reporting unit and tax rates in jurisdictions in which the reporting unit operates. A terminal value rate was applied to the final year of the projected periods to reflect continued stable, perpetual growth. Under the market approach, the Company utilized earnings multiples for public companies similar to the engineered materials reporting unit adjusted for a control premium.
While the Company believes the assumptions used in the impairment tests were reasonable, changes in market conditions or key assumptions made in future quantitative tests, including discount rates, revenue growth rates, tax rates, cash flow projections and terminal value rates, could negatively impact the results of future impairment testing for any of the Company's reporting units and could result in the recognition of additional impairment charges. Such charges could be material to the statements of operations and balance sheets in the period(s) recorded.
No events or changes in circumstances occurred during the three months ended December 31, 2024 that indicated the fair values of the Company's remaining reporting units were reduced below their carrying amounts. Accordingly, no additional impairment analysis was performed during that period.
Intangible Assets, Net
Finite-lived intangible assets are as follows:
LicensesCustomer-
Related
Intangible
Assets		Developed
Technology		Covenants
Not to
Compete
and Other		Total
(In $ millions)
Gross Asset Value
As of December 31, 202242 2,455 601 55 3,153 
Disposition (Note 4)
— (60)(1)— (61)
Exchange rate changes(1)42 1 — 42 
As of December 31, 202341 2,437 601 55 3,134 
Exchange rate changes(1)(31)(14)— (46)
As of December 31, 202440 2,406 587 55 3,088 
Accumulated Amortization
As of December 31, 2022(39)(567)(50)(40)(696)
Amortization— (120)(43)(1)(164)
Disposition (Note 4)
— 59 1 — 60 
Exchange rate changes1 (11)(3)(1)(14)
As of December 31, 2023(38)(639)(95)(42)(814)
Amortization— (116)(42)(1)(159)
Exchange rate changes1 27 3 — 31 
As of December 31, 2024(37)(728)(134)(43)(942)
Net book value3 1,678 453 12 2,146 
Indefinite-lived intangible assets are as follows:
Trademarks
and Trade Names
(In $ millions)
As of December 31, 20221,648 
Dispositions (Note 4)
(14)
Exchange rate changes21 
As of December 31, 20231,655 
Impairment losses(117)
Exchange rate changes(43)
As of December 31, 20241,495 
The Company assesses the recoverability of the carrying amount of its indefinite-lived intangible assets either qualitatively or quantitatively annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable.
During the three months ended September 30, 2024, the Company completed qualitative evaluations on its indefinite-lived intangible assets, with the exception of those assigned to the engineered materials reporting unit, and concluded that it was more likely than not that the fair value of these indefinite-lived intangible assets exceeded their carrying value. Indefinite-lived intangible assets assigned to the engineered materials reporting unit were tested quantitatively.
In connection with the Company's annual indefinite-lived intangible assets impairment test, the Company recorded a non-cash impairment loss of $34 million during the three months ended September 30, 2024, in Other charges (gains), net (Note 24) to impair the net book value of certain trade names, primarily Zytel®, included in the Engineered Materials segment.
Additionally, in conjunction with the goodwill impairment test in the three months ended December 31, 2024, the Company performed an interim impairment test on the indefinite-lived intangible assets assigned to the engineered materials reporting unit. The Company recorded a non-cash impairment loss of $83 million in Other charges (gains), net (Note 24) to impair the net book value of certain trade names, primarily Zytel®, included in the Engineered Materials segment.
Indefinite-lived intangible assets assigned to the engineered materials reporting unit were tested quantitatively utilizing the relief from royalty method under the income approach to determine the estimated fair value for each indefinite-lived intangible asset. The key assumptions used in this model include discount rates, royalty rates, revenue growth rates, tax rates, sales projections and terminal value rates. The discount rates were based on the Company's weighted average return on assets adjusted for risks specific to the indefinite-lived intangible assets. Royalty rates are established by management using the most recent third party valuations and are periodically substantiated by third-party valuation consultants. The revenue growth rates and sales projections were based on historical trends and expected growth drivers such as macroeconomic trends in the industries and territories in which the indefinite-lived intangible assets operate. The tax rates considered the operating structure of the Company and tax rates in jurisdictions in which the indefinite-lived intangible assets operate. A terminal value rate was applied to the final year of the projected period to reflect continued stable, perpetual growth.
While the Company believes the assumptions used in the impairment tests were reasonable, changes in market conditions or key assumptions made in future quantitative tests, including discount rates, royalty rates, revenue growth rates, tax rates, sales projections and terminal value rates, could negatively impact the results of future impairment testing and could result in the recognition of additional impairment losses. Such charges could be material to the statements of operations and balance sheets in the period(s) recorded.
No events or changes in circumstances occurred during the three months ended December 31, 2024 that indicated the carrying amount of the Company's remaining indefinite-lived intangible assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period.
During the year ended December 31, 2024, the Company did not renew or extend any intangible assets.
Estimated amortization expense for the succeeding five fiscal years is as follows:
 (In $ millions)
2025162 
2026162 
2027162 
2028162 
2029157