Allison Transmission Holdings Inc Goodwill & Intangibles Disclosure
NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS
As of both December 31, 2025 and 2024, the carrying amount of the Company’s Goodwill was $2,075 million.
The following presents a summary of other intangible assets (dollars in millions):
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||||||||||||||||||
|
|
Intangible |
|
|
Accumulated |
|
|
Intangible |
|
|
Intangible |
|
|
Accumulated |
|
|
Intangible |
|
||||||
Other intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trade name |
|
$ |
791 |
|
|
$ |
— |
|
|
$ |
791 |
|
|
$ |
791 |
|
|
$ |
— |
|
|
$ |
791 |
|
Customer relationships — commercial |
|
|
839 |
|
|
|
(839 |
) |
|
|
— |
|
|
|
839 |
|
|
|
(837 |
) |
|
|
2 |
|
Proprietary technology |
|
|
484 |
|
|
|
(481 |
) |
|
|
3 |
|
|
|
507 |
|
|
|
(481 |
) |
|
|
26 |
|
Customer relationships — defense |
|
|
62 |
|
|
|
(62 |
) |
|
|
— |
|
|
|
62 |
|
|
|
(59 |
) |
|
|
3 |
|
Non-compete agreement |
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
Total |
|
$ |
2,177 |
|
|
$ |
(1,383 |
) |
|
$ |
794 |
|
|
$ |
2,200 |
|
|
$ |
(1,378 |
) |
|
$ |
822 |
|
Amortization of intangible assets was $7 million, $10 million and $45 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company’s 2025 annual goodwill impairment test indicated that the fair value of the reporting unit exceeded its carrying value, indicating no impairment. The Company's 2025 annual indefinite-lived intangible assets impairment test indicated that the fair value of the Company’s indefinite-lived intangible assets exceeded their carrying value, indicating no impairment.
As a result of events and circumstances in the fourth quarter of 2025, primarily deteriorating market conditions, the Company performed an impairment analysis on the long-lived, proprietary technology intangible asset associated with certain electrified products. The Company used a market approach to determine the fair value of the assets, resulting in a $21 million impairment loss for the year ended December 31, 2025 for long-lived, intangible assets. There was a $1 million impairment loss for the year ended December 31, 2024. See "Note 5. Property, Plant and Equipment" for more information on the impairment of property, plant and equipment assets related to the production of certain electrified products and "Note 2. Summary of Significant Accounting Policies" for more information.
Amortization expense related to other intangible assets for the next five fiscal years is expected to be (dollars in millions):
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 |
|
|
2030 |
|
|||||
Amortization expense |
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 19, 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.