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Goodwill and Intangible Assets, net
 9 Months Ended
Sep. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill
Engineered
Materials		Acetyl ChainTotal
(In $ millions)
As of December 31, 2025(1)
3,782 389 4,171 
Transfer(2)
2 — 2 
Exchange rate changes(16)(7)(23)
As of September 30, 2026(1)
3,768 382 4,150 
______________________________
(1)Includes accumulated impairment losses of $2.7 billion in the Engineered Materials segment.
(2)Related to the sale of the Micromax® business (Note 3).
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, 2026 and September 30, 2025, the Company completed qualitative evaluations of its reporting units, with the exception of the engineered materials reporting unit, which was tested quantitatively. The Company concluded that it was more likely than not that the fair value of the reporting units evaluated qualitatively exceeded such units' carrying amount.
The results of the quantitative test performed during the three months ended September 30, 2026 of the engineered materials reporting unit determined that the estimated fair value of the engineered materials reporting unit exceeded its carrying amount by approximately 8%.
The results of the quantitative test performed during the three months ended September 30, 2025 of the engineered materials reporting unit determined that the carrying amount of the engineered materials reporting unit exceeded its estimated fair value. As such, the Company recorded a non-cash goodwill impairment loss of approximately $1.0 billion in Other (charges) gains, net (Note 18) within the Engineered Materials segment during the three months ended September 30, 2025. Although the projected cash flows of the engineered materials reporting unit had not declined from the projections used in the December 31, 2024 quantitative analysis, the impairment loss was primarily driven by a decline in the Company's market capitalization as a result of a decrease in the stock price as of the testing date which led to a 275 basis point increase in the discount rate used in the model.
The Company recorded an additional non-cash goodwill impairment loss of $98 million in Other (charges) gains, net (Note 18) within the Engineered Materials segment during the three months ended September 30, 2025, due to the impact on the engineered materials reporting unit of classifying the Micromax® portfolio of products as held for sale as of September 30, 2025 (Note 3).
The quantitative evaluations of the engineered materials reporting unit utilized an equal weighting of the income approach based on a discounted cash flow valuation model of the reporting unit and market approach using the guideline public company method. The Company applied equal weighting as both methods were determined to be equally relevant and reliable indicators of the reporting unit's fair value. The key assumptions used in the discounted cash flow valuation model include discount rates, revenue growth rates, tax rates, cash flow projections and terminal value rates. The discount rates used were based on the rates estimated by the weighted average cost of capital ("WACC") considering relevant peer companies and adjusting for company-specific risk factors. The revenue growth rates and cash flow projections were based on historical trends, macroeconomic trends in the industries and territories in which the reporting units operate, expected market segment growth rates and other internal and external sources, which methodology aligns with the Company's internal financial planning and analysis forecasting process. The tax rates considered the operating structure of the reporting unit and 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 and is based on long-term inflation forecasts, industry growth and long-term economic growth potential. The market approach estimated the fair value using valuation multiples of comparable companies operating in similar industries.
While the Company believes the estimates and assumptions used in the impairment tests were reasonable, the Company's estimates and assumptions are inherently uncertain and change over time based on operating results, market conditions and other factors. These changes could materially affect key assumptions made in future quantitative tests, including discount rates, revenue growth rates, tax rates, cash flow projections and terminal value rates and could negatively impact the results of future impairment testing for each of the Company's reporting units and result in the recognition of impairment losses. Such losses could be material to the statements of operations and balance sheets in the period(s) recorded.
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, 202541 2,431 563 54 3,089 
Exchange rate changes2 (19)(7)— (24)
As of September 30, 202643 2,412 556 54 3,065 
Accumulated Amortization
As of December 31, 2025(39)(887)(170)(44)(1,140)
Amortization— (88)(30)(1)(119)
Exchange rate changes(1)14 2 — 15 
As of September 30, 2026(40)(961)(198)(45)(1,244)
Net book value3 1,451 358 9 1,821 
Indefinite-lived intangible assets are as follows:
Trademarks
and Trade Names
(In $ millions)
As of December 31, 20251,235 
Exchange rate changes(20)
As of September 30, 20261,215 
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, 2026 and September 30, 2025, the Company qualitatively determined that the fair value of each indefinite-lived intangible asset more likely than not exceeded its carrying amount, with the exception of those assigned to the engineered materials reporting unit.
The results of the quantitative tests of all indefinite-lived intangible assets assigned to the engineered material reporting unit performed during the three months ended September 30, 2026 determined that the estimated fair values of certain indefinite-lived intangible assets, primarily the Zytel® trade name, exceeded their carrying amounts by a range of 1% to 6%. As of September 30, 2026, the combined carrying amount of those indefinite-lived intangible assets was $910 million. The estimated fair values of the remaining indefinite-lived intangible assets subject to quantitative assessment exceeded their carrying amounts by a substantial margin.
The results of the quantitative tests of all indefinite-lived intangible assets assigned to the engineered material reporting unit performed during the three months ended September 30, 2025 determined that the carrying amount of certain of the Company's trade names, primarily Zytel®, exceeded their fair value. The Company recorded a non-cash impairment loss of $346 million in Other (charges) gains, net (Note 18) during the three months ended September 30, 2025. The impairment of these trade names was primarily driven by a decline in the Company's market capitalization as a result of a decrease in the stock price as of the testing date which led to an increase in the discount rates used in the models.
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 and sales projections, tax rates and terminal value rates. The discount rates were based on the rates estimated by the Company's weighted average return on assets which considers the WACC and risks specific to the indefinite-lived intangible assets. Royalty rates were based on market transactional data and the most recent third party valuations which 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, expected industry and product growth rates and other internal and external sources, which methodology aligns with the Company's internal financial planning and analysis process. The tax rates considered the operating structure of the Company and tax rates and jurisdictions in which the entity that owns the indefinite-lived intangible assets operates. A terminal value rate was applied to the final year of the projected period to reflect continued stable, perpetual growth and is based on long-term inflation forecast, industry and product growth and long-term economic growth potential.
While the Company believes the estimates and assumptions used in the impairment tests were reasonable, the estimates and assumptions are inherently uncertain and change over time based on operating results, market conditions and other factors. These changes could materially affect key assumptions made in future quantitative tests, including discount rates, royalty rates, revenue growth rates and sales projections, tax rates and terminal value rates and could negatively impact the results of future impairment testing for each of the Company's indefinite-lived intangible assets and result in the recognition of impairment losses. Such losses could be material to the statements of operations and balance sheets in the period(s) recorded.
During the nine months ended September 30, 2026, the Company did not renew or extend any intangible assets.
Estimated amortization expense for the succeeding five fiscal years is as follows:
(In $ millions)
2027158 
2028157 
2029152 
2030149 
2031148