ALLIENT INC Goodwill & Intangibles Disclosure
4. GOODWILL
The change in the carrying amount of goodwill for 2023 and 2022 is as follows (in thousands):
December 31, |
| December 31, | |||
2023 | 2022 | ||||
Beginning balance | $ | 126,366 | 106,633 | ||
Goodwill acquired | 2,876 | 21,556 | |||
Impact of measurement period adjustments of acquisitions (Note 2) | 1,356 | 291 | |||
Effect of foreign currency translation |
| 740 |
| (2,114) | |
Ending balance | $ | 131,338 | $ | 126,366 |
The purchase price allocation for Sierramotion is not final as of December 31, 2023. Adjustments to this allocation may result in changes to the amounts recorded for goodwill in future periods. The purchase price allocation was finalized for FPH, ThinGap, and Airex during 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 5, 2024 | Showing above |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 9, 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.