AMERICAN VANGUARD CORP Goodwill & Intangibles Disclosure
(9) Intangible Assets and Goodwill
The following schedule represents intangible assets recognized in connection with product acquisitions (See Note 1 for the Company’s accounting policy regarding intangible assets):
|
|
Amount |
|
|
Intangible assets at January 1, 2023 |
|
$ |
184,664 |
|
Additions during fiscal 2023 |
|
|
941 |
|
Impact of movement in exchange rates |
|
|
177 |
|
Amortization expense |
|
|
(13,274 |
) |
Intangible assets at December 31, 2023 |
|
|
172,508 |
|
Measurement period adjustment |
|
|
1,696 |
|
Additions during fiscal 2024 |
|
|
418 |
|
Impact of movement in exchange rates |
|
|
(1,441 |
) |
Amortization expense |
|
|
(13,339 |
) |
|
|
(9,345 |
) |
|
Intangible assets at December 31, 2024 |
|
|
150,497 |
|
Additions during fiscal 2025 |
|
|
1,280 |
|
Impact of movement in exchange rates |
|
|
894 |
|
Amortization expense |
|
|
(12,123 |
) |
|
|
(1,802 |
) |
|
Intangible assets at December 31, 2025 |
|
$ |
138,746 |
|
|
|
|
|
|
Goodwill at January 1, 2023 |
|
$ |
47,010 |
|
Additions during fiscal 2023 |
|
|
2,949 |
|
Impact of movement in exchange rates |
|
|
1,240 |
|
Goodwill at December 31, 2023 |
|
|
51,199 |
|
Measurement period adjustment |
|
|
(1,339 |
) |
Impact of movement in exchange rates |
|
|
(3,110 |
) |
Goodwill impairment |
|
|
(27,049 |
) |
Goodwill at December 31, 2024 |
|
|
19,701 |
|
Impact of movement in exchange rates |
|
|
1,339 |
|
Goodwill impairment |
|
|
(21,040 |
) |
Goodwill at December 31, 2025 |
|
$ |
— |
|
The Company recorded intangible asset impairment charges related to its Diflubenzuron and PCNB products in the amount of $1,802 during the year ended December 31, 2025. During the year ended December 31, 2024, the Company recorded impairment charges related to its SIMPAS precision application technology platform, two of its herbicide products and one of its fungicide products in the amount of $9,345.
The Company recorded $21,040 and $27,049 in goodwill impairment charges for the year ended December 31, 2025 and 2024, respectively.
The following schedule represents the gross carrying amount and accumulated amortization of intangible assets as of December 31, 2025 and 2024. Product rights and trademarks are amortized over the lesser of the useful life ranging from 10 to 28 years, or the patent life. Customer lists are amortized over their expected useful lives of to ten years. The amortization expense is included in operating expenses on the consolidated statements of operations.
|
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
||||||
Product rights and patents |
|
$ |
262,649 |
|
|
$ |
149,576 |
|
|
$ |
113,073 |
|
|
$ |
260,928 |
|
|
$ |
138,090 |
|
|
$ |
122,838 |
|
Trademarks |
|
|
38,808 |
|
|
|
15,842 |
|
|
|
22,966 |
|
|
|
38,475 |
|
|
|
14,375 |
|
|
|
24,100 |
|
Customer lists |
|
|
12,328 |
|
|
|
9,621 |
|
|
|
2,707 |
|
|
|
11,874 |
|
|
|
8,315 |
|
|
|
3,559 |
|
Total intangibles assets |
|
$ |
313,785 |
|
|
$ |
175,039 |
|
|
$ |
138,746 |
|
|
$ |
311,277 |
|
|
$ |
160,780 |
|
|
$ |
150,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Domestic intangible assets |
|
|
173,898 |
|
|
|
109,885 |
|
|
|
64,013 |
|
|
|
172,755 |
|
|
|
102,347 |
|
|
|
70,408 |
|
International intangible assets |
|
|
139,887 |
|
|
|
65,154 |
|
|
|
74,733 |
|
|
|
138,522 |
|
|
|
58,433 |
|
|
|
80,089 |
|
Total intangibles assets - domestic and international |
|
$ |
313,785 |
|
|
$ |
175,039 |
|
|
$ |
138,746 |
|
|
$ |
311,277 |
|
|
$ |
160,780 |
|
|
$ |
150,497 |
|
The following schedule represents future amortization charges related to intangible assets:
Year ending December 31, |
|
Amount |
|
|
2026 |
|
$ |
12,210 |
|
2027 |
|
|
11,590 |
|
2028 |
|
|
10,659 |
|
2029 |
|
|
10,347 |
|
2030 |
|
|
10,203 |
|
Thereafter |
|
|
83,737 |
|
|
|
$ |
138,746 |
|
The following schedule represents the balance of goodwill at December 31, 2025 and 2024:
|
|
2025 |
|
|
2024 |
|
||
Domestic |
|
$ |
— |
|
|
$ |
— |
|
International |
|
|
— |
|
|
|
19,701 |
|
Total goodwill, domestic and international |
|
$ |
— |
|
|
$ |
19,701 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | May 29, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 12, 2019 | |
| 2017 | Mar 14, 2018 | |
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.