AVIAT NETWORKS, INC.AVNW

AVIAT NETWORKS, INC. Goodwill & Intangibles Disclosure

10-KFiled Sep 10, 20251 min read
Goodwill and Intangible Assets
The following presents details of goodwill and intangible assets:
(In thousands)
June 27, 2025June 28, 2024
Goodwill$19,655 $8,217 
The $11.4 million increase in goodwill during fiscal 2025 is associated with the purchase price allocations for the 4RF acquisition and the NEC Transaction as described in Note 12. Acquisitions. The Company performs its annual goodwill impairment test on the first day of its fourth fiscal quarter. The fiscal 2025 annual goodwill impairment test did not result in an impairment.
Useful life in YearsJune 27, 2025June 28, 2024
Intangible assets:
(in thousands)
Technology7$4,998$1,800
Patents10690690
Customer relationships
10 - 15
24,02211,530
Trade names
3 - 16
1,6301,330
Total gross intangible assets
31,34015,350
Accumulated amortization(4,443)(1,706)
Total net intangible assets$26,897$13,644
The $16.0 million increase in finite-lived intangible assets during fiscal 2025 is associated with the purchase price allocations for the 4RF acquisition and the NEC Transaction as described in Note 12. Acquisitions. Amortization of finite-lived intangibles for fiscal 2025, 2024 and 2023 was $2.7 million, $1.0 million and $0.7 million, respectively, and is included in selling and administrative expenses. There were no impairment charges recorded for fiscal 2025, 2024 and 2023.
As of June 27, 2025, the estimated future amortization expense of finite-lived intangible assets is as follows (in thousands):
(In thousands)
2026$2,892 
20272,892 
20282,792 
20292,792 
20302,792 
Thereafter12,737 
Total$26,897 

Historical Timeline

Fiscal YearFiled
2025Sep 10, 2025Showing above
2024Oct 4, 2024

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.

Other Available Disclosures

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