Goodwill And Other Intangibles (Note)

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

The following table presents changes in the goodwill balances as allocated to each reportable business segment for the years ended December 31, 2024 and 2023:


In millions	Industrial Packaging		Global Cellulose Fibers		Total
Balance as of December 31, 2022
Goodwill	$	3,413	$	52	$	3,465
Accumulated impairment losses	(372)		(52)		(424)
	3,041		—		3,041
Balance as of December 31, 2023
Goodwill	3,413		52		3,465
Accumulated impairment losses	(372)		(52)		(424)
	3,041		—		3,041
Currency translation and other (a)	(3)		—		(3)
Balance as of December 31, 2024
Goodwill	3,410		52		3,462
Accumulated impairment losses	(372)		(52)		(424)
Total	$	3,038	$	—	$	3,038

(a) Represents the effects of foreign currency translations and reclassifications.

The Company performed its annual goodwill impairment testing by applying the quantitative goodwill impairment test to its North America Industrial Packaging reporting unit as of October 1, 2024. This was performed by comparing the carrying amount of the North America Industrial Packaging reporting unit to its estimated fair value. The estimated fair value of the reporting unit was calculated using a weighted approach based on discounted future cash flows, market multiples and transaction multiples which are classified as Level 2 and Level 3 within the fair value hierarchy. The determination of fair value using the discounted cash flow approach requires management to make significant estimates and assumptions related to forecasts of future revenues, operating profit margins, and discount rates. The determination of fair value using market multiples and transaction multiples requires management to make significant assumptions related to revenue multiples and adjusted earnings before interest, taxes, depreciation,

and amortization ("EBITDA") multiples. The results of our quantitative goodwill impairment test indicated that the carrying amount did not exceed the estimated fair value of the North America Industrial Packaging reporting unit.

In the fourth quarter of 2022, the Company performed the quantitative goodwill impairment test related to its EMEA Industrial Packaging reporting unit and estimated fair value in the same manner noted above. The results of our quantitative goodwill impairment test indicated that the carrying amount exceeded the estimated fair value of the EMEA Industrial Packaging reporting unit and it was determined that all of the goodwill in the reporting unit, totaling $76 million, was impaired. The decline in the fair value of EMEA Industrial Packaging and resulting impairment charge was due to the impacts of certain negative macroeconomic conditions, including the impacts from inflation and the geopolitical environment to the reporting unit.

OTHER INTANGIBLES

Identifiable intangible assets are recorded in Deferred Charges and Other Assets in the accompanying consolidated balance sheet and comprised the following:


	2024						2023
In millions at December 31	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Customer relationships and lists	$	489	$	360	$	129	$	494	$	335	$	159
Tradenames, patents and trademarks, and developed technology	170		162		8		170		154		16
Land and water rights	8		2		6		8		2		6
Other	19		17		2		21		19		2
Total	$	686	$	541	$	145	$	693	$	510	$	183

The Company recognized the following amounts as amortization expense related to intangible assets:


In millions	2024		2023		2022
Amortization expense related to intangible assets	$	37	$	37	$	44

Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding years is as follows: 2025 – $38 million, 2026 – $29 million, 2027 – $10 million, 2028 – $8 million, 2029 – $7 million, and cumulatively thereafter – $47 million.