ALLEGRO MICROSYSTEMS, INC. Goodwill & Intangibles Disclosure
The table below summarizes the changes in the carrying amount of goodwill as follows:
|
|
Total |
|
|
Balance at March 29, 2024 |
|
$ |
202,425 |
|
Adjustments |
|
|
97 |
|
Foreign currency translation |
|
|
(47 |
) |
Balance at March 28, 2025 |
|
$ |
202,475 |
|
Foreign currency translation |
|
|
816 |
|
Balance at March 27, 2026 |
|
$ |
203,291 |
|
Intangible assets, net were as follows:
|
|
March 27, |
|
|||||||||
Description |
|
Gross |
|
|
Accumulated |
|
|
Net Carrying |
|
|||
Patents |
|
$ |
53,126 |
|
|
$ |
(30,009 |
) |
|
$ |
23,117 |
|
Customer relationships |
|
|
15,187 |
|
|
|
(5,125 |
) |
|
|
10,062 |
|
Completed technologies |
|
|
255,618 |
|
|
|
(52,391 |
) |
|
|
203,227 |
|
Indefinite-lived process technology and trademarks |
|
|
2,269 |
|
|
|
— |
|
|
|
2,269 |
|
Trademarks and other |
|
|
93 |
|
|
|
(93 |
) |
|
|
— |
|
Total |
|
$ |
326,293 |
|
|
$ |
(87,618 |
) |
|
$ |
238,675 |
|
|
|
March 28, |
|
|||||||||
Description |
|
Gross |
|
|
Accumulated |
|
|
Net Carrying |
|
|||
Patents |
|
$ |
49,749 |
|
|
$ |
(25,710 |
) |
|
$ |
24,039 |
|
Customer relationships |
|
|
14,964 |
|
|
|
(4,102 |
) |
|
|
10,862 |
|
Completed technologies |
|
|
255,588 |
|
|
|
(30,648 |
) |
|
|
224,940 |
|
Indefinite-lived process technology and trademarks |
|
|
2,274 |
|
|
|
— |
|
|
|
2,274 |
|
Trademarks and other |
|
|
86 |
|
|
|
(86 |
) |
|
|
— |
|
Total |
|
$ |
322,661 |
|
|
$ |
(60,546 |
) |
|
$ |
262,115 |
|
Intangible assets amortization expense was $26,864, $25,658 and $14,587 for the fiscal years ended March 27, 2026,
March 28, 2025 and March 29, 2024, respectively.
In fiscal year 2025, the Company acquired certain intellectual property assets for a total purchase price of $6,000, including certain contingent, milestone-based payments, which were paid during the fiscal year ended March 27, 2026.
In February 2024, the Company initiated a realignment of resources associated with our photonics and advanced 3D imaging solutions business to refocus spending on other technologies. As a result of the change in strategy, the Company recorded impairment charges of $11,600 in the fourth quarter of fiscal year 2024 related to intangible assets, net, and long-lived assets from our 2021 acquisition of Voxtel, Inc. The results of the annual impairment test did not indicate any impairments of any other long-lived intangible assets for fiscal years 2026, 2025 and 2024.
As of March 27, 2026, amortization expense of intangible assets is expected to be as follows:
2027 |
|
$ |
25,915 |
|
2028 |
|
|
25,549 |
|
2029 |
|
|
25,183 |
|
2030 |
|
|
24,822 |
|
2031 |
|
|
24,397 |
|
Thereafter |
|
|
110,540 |
|
Total |
|
$ |
236,406 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 21, 2026 | Showing above |
| 2025 | May 22, 2025 | |
| 2024 | May 23, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 18, 2022 | |
| 2021 | May 19, 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.