Goodwill and Intangibles

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

Goodwill and Intangibles

Goodwill

MPC annually evaluates goodwill for impairment as of November 30, as well as whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit with goodwill is less than its carrying amount. There were no impairments of goodwill required based on our annual test of goodwill in 2024 and 2023.

At December 31, 2024, MPC had four reporting units with goodwill totaling approximately $8.24 billion. For the annual impairment assessment as of November 30, 2024, management performed only a qualitative assessment for three reporting units as we determined it was more likely than not that the fair value of the reporting units exceeded the carrying value. A quantitative assessment was performed for the remaining reporting unit, which resulted in the fair value of the reporting unit exceeding its carrying value by greater than 10 percent.

The changes in the carrying amount of goodwill for 2024 were as follows:

(Millions of dollars)	Refining & Marketing		Midstream		Total
Balance as of December 31, 2022	$	561	$	7,683	$	8,244
Impairment losses	—		—		—
Balance as of December 31, 2023	561		7,683		8,244
Impairment losses	—		—		—
Balance as of December 31, 2024	$	561	$	7,683	$	8,244
Gross goodwill as of December 31, 2024	$	6,141	$	10,824	$	16,965
Accumulated impairment losses	(5,580)		(3,141)		(8,721)
Balance as of December 31, 2024	$	561	$	7,683	$	8,244

Intangible Assets

Our definite lived intangible assets as of December 31, 2024 and 2023 are as shown below.

	December 31, 2024						December 31, 2023
(Millions of dollars)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Customer contracts and relationships	$	4,111	$	2,446	$	1,665	$	3,838	$	2,132	$	1,706
Brand rights and tradenames	101		89		12		101		79		22
Royalty agreements	141		120		21		173		142		31
Other	36		31		5		41		35		6
Total	$	4,389	$	2,686	$	1,703	$	4,153	$	2,388	$	1,765

At both December 31, 2024 and 2023, we had indefinite lived intangible assets of $71 million, which are emission allowance credits.

Amortization expense was $266 million in 2024 and $316 million in 2023. Estimated future amortization expense for the next five years related to the intangible assets at December 31, 2024 is as follows:

(Millions of dollars)
2025	$	250
2026	230
2027	202
2028	180
2029	16