ARMSTRONG WORLD INDUSTRIES INC Goodwill & Intangibles Disclosure
NOTE 12. GOODWILL AND INTANGIBLE ASSETS
The following table details amounts related to our goodwill and intangible assets:
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December 31, 2025 |
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December 31, 2024 |
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Estimated |
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Gross |
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Accumulated Amortization |
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Gross |
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Accumulated Amortization |
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Amortizing intangible assets |
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Customer relationships |
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3-20 years |
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$ |
191.6 |
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$ |
170.7 |
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$ |
194.7 |
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$ |
163.9 |
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Developed technology |
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10-20 years |
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110.3 |
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87.9 |
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114.8 |
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85.9 |
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Trademarks and brand names |
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3-20 years |
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24.4 |
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5.8 |
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23.6 |
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4.3 |
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Software |
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5-7 years |
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19.7 |
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11.2 |
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19.7 |
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7.8 |
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Non-compete agreements |
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3-5 years |
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7.1 |
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2.6 |
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15.9 |
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5.6 |
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Other |
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Various |
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7.4 |
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2.9 |
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9.0 |
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0.5 |
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Total |
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$ |
360.5 |
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$ |
281.1 |
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$ |
377.7 |
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$ |
268.0 |
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Non-amortizing intangible assets |
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Trademarks and brand names |
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Indefinite |
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345.8 |
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345.3 |
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Total intangible assets |
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$ |
706.3 |
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$ |
723.0 |
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Goodwill |
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Indefinite |
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$ |
217.8 |
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$ |
203.2 |
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As of December 31, 2025 and 2024, goodwill totaled $217.6 million and $203.0 million, respectively, within our Architectural Specialties segment, and $0.2 million within our Mineral Fiber segment for the same periods. The increase in goodwill as of December 31, 2025 compared to December 31, 2024 was due to changes in the purchase price allocation for Zahner, and the 2025 acquisitions of Parallel and Geometrik, net of foreign exchange movements.
The following table presents the amortization expense related to our intangible assets for the years ended December 31, 2025, 2024 and 2023:
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2025 |
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2024 |
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2023 |
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Amortization expense |
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$ |
25.4 |
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$ |
19.9 |
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$ |
15.3 |
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The expected annual amortization expense for the years 2026 through 2030 are as follows:
2026 |
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$ |
20.6 |
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2027 |
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11.1 |
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2028 |
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9.8 |
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2029 |
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5.6 |
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2030 |
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4.1 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 22, 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.