Company: THS
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001320695-25-000107
Chunk: 48

Company: TreeHouse Foods, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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.7 million and $24.4 million for the three months ended September 30, 2025 and 2024, respectively, and $85.9 million and $73.0 million for the nine months ended September 30, 2025 and 2024, respectively.Asset ImpairmentWe evaluate property, plant, and equipment, operating lease right-of-use assets, and finite lived intangible assets for impairment when circumstances indicate that their carrying values may not be recoverable. Indicators of impairment include deteriorations in operating cash flows, the anticipated sale or disposal of an asset group, and other significant changes in business conditions.During the second quarter of 2024, as a result of forecasted cash flow losses, the Company made the decision to exit the RTD business. As a result, the Company performed a recoverability assessment over the RTD asset group in the second quarter of 2024, which indicated that the asset group was not recoverable, and we were required to determine the fair value of the business. Our fair value assessment indicated that the carrying value was in excess of the fair value, and an impairment of $19.3 million of property, plant, and equipment was recognized in our RTD beverages asset group. The asset impairment charge was included in Impairment in the Condensed Consolidated Statements of Operations.Impairment charges are measured by comparing the carrying value of the asset group to its estimated fair value. The fair value of the asset group was based on expected future cash flows using Level 3 inputs under ASC 820. We can provide no assurance regarding the prospect of additional impairment charges in future periods.

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TREEHOUSE FOODS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

8. GOODWILL AND INTANGIBLE ASSETS  GoodwillChanges in the carrying amount of goodwill for the nine months ended September 30, 2025 are as follows:Goodwill (In millions)Balance at December 31, 2024$1,819.3 Foreign currency exchange adjustments2.1 Acquisition69.7 Impairment loss(289.7)Balance at September 30, 2025$1,601.4 During the third quarter of 2025, we concluded that the sustained decrease in our share price and market capitalization was a triggering event requiring an interim goodwill impairment assessment. We performed an interim impairment test as of the last day of our third quarter, September