Adeia Inc. Goodwill & Intangibles Disclosure
NOTE 9 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS
Goodwill
The carrying value of goodwill at December 31, 2025 and December 31, 2024 was $313.7 million. There were no changes to the carrying value of goodwill from January 1, through December 31, 2025. Goodwill at each reporting unit is evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The process of evaluating goodwill for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit.
As part of its annual goodwill impairment test, the Company elected to proceed with a qualitative goodwill impairment test and no indicators of potential impairment were identified. Additionally, based on the qualitative evaluation, which included consideration of the carrying value and market capitalization of the Company, no goodwill impairment triggers were identified as of December 31, 2025. No impairment charges were recognized for the years ended December 31, 2025, 2024 and 2023.
Identified Intangible Assets
Identified intangible assets consisted of the following (in thousands):
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December 31, 2025 |
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December 31, 2024 |
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Average |
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Gross |
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Accumulated |
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Net |
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Gross |
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Accumulated |
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Net |
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Finite-lived intangible assets |
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Acquired patents / core technology |
|
3-10 |
|
$ |
737,985 |
|
|
$ |
(434,529 |
) |
|
$ |
303,456 |
|
|
$ |
679,085 |
|
|
$ |
(377,908 |
) |
|
$ |
301,177 |
|
Customer contracts and related relationships |
|
3-9 |
|
|
155,900 |
|
|
|
(155,900 |
) |
|
|
— |
|
|
|
155,900 |
|
|
|
(155,900 |
) |
|
|
— |
|
Existing technology / content database |
|
5-10 |
|
|
38,681 |
|
|
|
(38,681 |
) |
|
|
— |
|
|
|
38,681 |
|
|
|
(38,681 |
) |
|
|
— |
|
Trademarks/trade name |
|
4-10 |
|
|
1,300 |
|
|
|
(1,300 |
) |
|
|
— |
|
|
|
1,300 |
|
|
|
(1,300 |
) |
|
|
— |
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Total intangible assets |
|
|
|
$ |
933,866 |
|
|
$ |
(630,410 |
) |
|
$ |
303,456 |
|
|
$ |
874,966 |
|
|
$ |
(573,789 |
) |
|
$ |
301,177 |
|
As of December 31, 2025, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):
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Amounts |
|
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2026 |
|
$ |
63,292 |
|
2027 |
|
|
62,940 |
|
2028 |
|
|
57,897 |
|
2029 |
|
|
55,648 |
|
2030 |
|
|
30,223 |
|
Thereafter |
|
|
33,456 |
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Total |
|
$ |
303,456 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.