ADVANCED ENERGY INDUSTRIES INC Goodwill & Intangibles Disclosure
NOTE 5. INTANGIBLE ASSETS AND GOODWILL
Intangible assets consisted of the following:
December 31, 2025 | |||||||||||
| Gross Carrying | | Accumulated | | Net Carrying | | Weighted Average Remaining | ||||
Amount | Amortization | Amount |
| Useful Life (in years) | |||||||
(in millions) | |||||||||||
Technology | $ | 101.8 | $ | (78.2) | $ | 23.6 | 6.6 | ||||
Customer relationships |
| 171.4 | (86.3) |
| 85.1 | 7.7 | |||||
Trademarks and other |
| 27.3 | (18.3) |
| 9.0 | 3.6 | |||||
Total | $ | 300.5 | $ | (182.8) | $ | 117.7 | 7.2 | ||||
December 31, 2024 | |||||||||||
| Gross Carrying | | Accumulated | | Net Carrying | Weighted Average Remaining | |||||
Amount | Amortization | Amount | Useful Life (in years) | ||||||||
(in millions) | |||||||||||
Technology | $ | 99.9 | $ | (70.0) | $ | 29.9 | 7.0 | ||||
Customer relationships |
| 168.9 | (70.9) |
| 98.0 | 8.5 | |||||
Trademarks and other |
| 27.1 | (15.6) |
| 11.5 | 4.6 | |||||
Total | $ | 295.9 | $ | (156.5) | $ | 139.4 | 7.9 | ||||
Amortization expense related to intangible assets was as follows:
Years Ended December 31, | |||||||||
2025 | | 2024 | | 2023 | |||||
(in millions) | |||||||||
Amortization expense | $ | 22.1 | $ | 26.0 | $ | 28.3 | |||
Estimated future amortization expense related to intangibles is as follows:
Year Ending December 31, | | (in millions) | |
2026 | $ | 20.1 | |
2027 |
| 17.8 | |
2028 |
| 16.6 | |
2029 |
| 15.0 | |
2030 | 13.4 | ||
Thereafter |
| 34.8 | |
Total | $ | 117.7 |
The following table summarizes the changes in goodwill:
December 31, | December 31, | |||||
2025 | | 2024 | ||||
(in millions) | ||||||
Balance at beginning of period | $ | 296.0 | $ | 283.8 | ||
Additions from acquisition | — | 16.1 | ||||
Foreign currency translation and other | 4.8 | (3.9) | ||||
Balance at end of period | | $ | 300.8 | $ | 296.0 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2021 | Mar 16, 2022 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
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.