Aveanna Healthcare Holdings, Inc. Goodwill & Intangibles Disclosure
5. GOODWILL AND INTANGIBLE ASSETS, NET
The following table summarizes changes in goodwill by segment during the fiscal years ended January 3, 2026 and December 28, 2024 (amounts in thousands):
|
PDS |
|
|
HHH |
|
|
MS |
|
|
Total |
|
||||
Balance at December 30, 2023 and December 28, 2024, net (1) |
$ |
897,728 |
|
|
$ |
46,188 |
|
|
$ |
110,636 |
|
|
$ |
1,054,552 |
|
Addition - Note 4 |
|
64,178 |
|
|
|
- |
|
|
|
- |
|
|
|
64,178 |
|
Measurement period adjustments |
|
2,312 |
|
|
|
- |
|
|
|
- |
|
|
|
2,312 |
|
Balance at January 3, 2026, net (1) |
$ |
964,218 |
|
|
$ |
46,188 |
|
|
$ |
110,636 |
|
|
$ |
1,121,042 |
|
(1) Goodwill balance is net of accumulated impairment losses of $608.0 million for PDS, $119.8 million for MS, and $487.4 million for HHH. |
|
See Note 2 – Summary of Significant Accounting Policies, Goodwill for details on goodwill impairment.
The following tables summarize the changes in intangible assets for the fiscal years ended January 3, 2026 and December 28, 2024 (amounts in thousands):
|
January 3, 2026 |
|
||||||||||
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Accumulated Impairment |
|
Total |
|
||||
Definitive-lived intangible assets: |
|
|
|
|
|
|
|
|
||||
Trade names |
$ |
20,701 |
|
$ |
(20,478 |
) |
$ |
- |
|
$ |
223 |
|
Non-compete agreements |
|
7,265 |
|
|
(7,265 |
) |
|
- |
|
|
- |
|
Internal-use software |
|
11,653 |
|
|
(7,716 |
) |
|
- |
|
|
3,937 |
|
Total definitive-lived intangible assets |
|
39,619 |
|
|
(35,459 |
) |
|
- |
|
|
4,160 |
|
Indefinite-lived intangible assets: |
|
|
|
|
|
|
|
|
||||
Licenses |
|
102,123 |
|
|
- |
|
|
(13,724 |
) |
|
88,399 |
|
Total indefinite-lived intangible assets |
|
102,123 |
|
|
- |
|
|
(13,724 |
) |
|
88,399 |
|
Total intangible assets |
$ |
141,742 |
|
$ |
(35,459 |
) |
$ |
(13,724 |
) |
$ |
92,559 |
|
|
December 28, 2024 |
|
||||||||||
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Accumulated Impairment |
|
Total |
|
||||
Definitive-lived intangible assets: |
|
|
|
|
|
|
|
|
||||
Trade names |
$ |
20,161 |
|
$ |
(20,161 |
) |
$ |
- |
|
$ |
- |
|
Non-compete agreements |
|
7,265 |
|
|
(7,265 |
) |
|
- |
|
|
- |
|
Internal-use software |
|
11,653 |
|
|
(7,332 |
) |
|
- |
|
|
4,321 |
|
Total definitive-lived intangible assets |
|
39,079 |
|
|
(34,758 |
) |
|
- |
|
|
4,321 |
|
Indefinite-lived intangible assets: |
|
|
|
|
|
|
|
|
||||
Licenses |
|
97,123 |
|
|
- |
|
|
(11,878 |
) |
|
85,245 |
|
Total indefinite-lived intangible assets |
|
97,123 |
|
|
- |
|
|
(11,878 |
) |
|
85,245 |
|
Total intangible assets |
$ |
136,202 |
|
$ |
(34,758 |
) |
$ |
(11,878 |
) |
$ |
89,566 |
|
Amortization expense related to the Company’s intangible assets was $0.7 million and $1.2 million for the fiscal years ended January 3, 2026 and December 28, 2024, respectively. Included in the amounts above was amortization expense of internal-use software of $0.4 million for the fiscal year ended January 3, 2026 and $1.2 million for the fiscal year ended December 28, 2024. recorded in the fiscal year ended January 3, 2026 was related to PDS.
The estimated aggregate amortization expense related to intangible assets for each of the next five years subsequent to January 3, 2026 and thereafter is as follows (amounts in thousands):
Year Ending |
Definitive-lived |
|
|
January 2, 2027 |
$ |
1,257 |
|
January 1, 2028 |
|
719 |
|
December 30, 2028 |
|
719 |
|
December 29, 2029 |
|
621 |
|
December 28, 2030 |
|
482 |
|
Thereafter |
|
362 |
|
Total |
$ |
4,160 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
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.