Company: MATV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001000623-25-000024
Chunk: 13

Company: Mativ Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 13
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355.1 

Note 6. Goodwill

The changes in the carrying amount of goodwill by reportable segment were as follows (in millions): FAMSASTotalBalance at December 31, 2024$411.9 $53.7 $465.6 Goodwill impairment$(411.9)$— $(411.9)Foreign currency translation— 1.1 1.1 Balance at March 31, 2025$— $54.8 $54.8 Accumulated impairment loss for the FAM segment was $411.9 million as of March 31, 2025. Accumulated impairment loss for the SAS segment was $401.0 million as of March 31, 2025. During the first quarter of 2025, primarily in response to a sustained decline in the Company's share price,  an interim quantitative goodwill impairment test was performed. The fair value of a reporting unit is determined based on an income approach, utilizing estimated future cash flows discounted at a rate commensurate with the risk involved. This approach considers significant assumptions including projections of future performance, specifically our ability to sustain and grow market share at forecasted margins. It also includes significant assumptions around the rate a market participant would use to discount those cash flows. Changes in these assumptions could have a significant impact on the assessment of fair value. The fair value of each reporting unit was ultimately estimated using the income approach; however, management also evaluated fair value under the market approach to ensure the reasonableness of the estimated fair values.While significant estimates and assumptions related to forecasted future cash flows used in the March 1, 2025, interim impairment test were generally aligned with those used in the annual impairment test performed as of October 1, 2024, the discount rate for the FAM reporting unit which is aligned with the operating and reportable segment, was increased to 14%, to reflect a market participant view of additional risk associated with achieving forecasted cash flows in the growing end markets with which FAM is aligned. The interim impairment test resulted in a full impairment of all goodwill attributable to the FAM reporting unit. 

14

MATIV HOLDINGS, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

The fair value of the SAS reporting unit, also aligned with the operating and reportable segment, was estimated to exceed its carrying value by approximately 6% as of