Company: GEF
Filing Date: 2025-11-19
Form Type: 10-KT
Source: 0001628280-25-053146
Chunk: 65

Company: GREIF, INC
Filing Date: 2025-11-19
Form: 10-KT
Chunk 65
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 exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, we record an impairment of goodwill equal to the amount by which the carrying value exceeds the fair value of the reporting unit, not to exceed the recorded amount of goodwill.

The estimated fair value of the reporting units utilized in the impairment test is based on a discounted cash flow analysis utilizing the income approach and market multiple approach. Under this method, the principal valuation focus is on the reporting unit’s cash-generating capabilities. The discount rates used for impairment testing are based on a market participant’s weighted average cost of capital. The use of alternative estimates, peer groups or changes in the industry, or adjusting the discount rate, earnings before interest, taxes, depreciation, depletion and amortization, multiples or price earnings ratios used could affect the estimated fair value of the assets and potentially result in impairment. Any identified impairment would result in an adjustment to our results of operations.

Goodwill Impairment Testing due to Change in Reportable Segments

In December 2024, we announced changes to our reporting structure, effective November 1, 2024, moving to a material solution-based structure. This internal re-alignment has resulted in a change in our reportable segments from three: Global Industrial Packaging; Paper Packaging & Services; and Land Management; to four: Customized Polymer Solutions; Durable Metal Solutions; Sustainable Fiber Solutions; and Integrated Solutions.

The Customized Polymer Solutions reportable segment consists of three operating segments: Customized Polymer Solutions – Small Plastics & Jerrycans; Customized Polymer Solutions – Large/Medium Plastics; and Customized Polymer Solutions – Intermediate Bulk Containers. Each of these operating segments also qualify as a component that has discrete financial information available that is reviewed by segment management on a regular basis. As such, these components also represent our reporting units for purposes of goodwill impairment testing.

The Sustainable Fiber Solutions reportable segment consists of three operating segments: Sustainable Fiber Solutions – Boxboard & Converted; Sustainable Fiber Solutions – Containerboard & Corrugated; and Sustainable Fiber Solutions – Land Management. Each of these operating segments also qualify as a component that has discrete financial information available that is reviewed by segment management on a regular basis. As such, these components also represent our reporting units for purposes of goodwill impairment testing.

The Durable Metal Solutions reportable segment and the Integrated Solutions reportable segment each has only one operating segment and qualify as a component that has discrete financial information available that is reviewed by segment management on a regular basis. As such,