Brookfield Asset Management Ltd.BAM

Brookfield Asset Management Ltd. Goodwill & Intangibles Disclosure

10-KFiled Mar 2, 20262 min read
GOODWILL AND INTANGIBLE ASSETS, NET
The carrying value of goodwill was $236 million as of December 31, 2025 (2024 – $251 million).
Intangible assets, net consists of the following:
AS AT DECEMBER 31,
(MILLIONS)
20252024
Contractual customer relationships$362 $145 
Accumulated amortization and impairment(128)(107)
Intangible assets, net$234 $38 
Changes in intangible assets, net consists of the following:
AS AT DECEMBER 31,
(MILLIONS)
20252024
Balance, beginning of year$38 $42 
2025 Arrangement215 — 
Amortization(20)(4)
Other1 — 
Balance, end of year$234 $38 
Intangible assets, net consist of acquired contractual rights to earn future fee income, which have a weighted-average amortization period of 10 years as well as indefinite life intangible assets. Amortization of intangible assets held at December 31, 2025 is expected to be $25 million, $24 million, $24 million, and $24 million for each of the years ending December 31, 2026, 2027, 2028 and 2029, respectively.
In accordance with ASC 350 Intangibles — Goodwill and Other, management reviews its goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, and considers factors including, but not limited to, expected cash flows from its interest in future management fees and the ability to raise new funds. During the year ended December 31, 2025, the Company recorded an impairment loss of $15 million (2024 – $nil) related to a specific underlying strategy that will not be continued. In all other instances the fair value was found to be in excess of the carrying value of the relevant reporting unit.
In addition, an assessment of impairment indicators was performed with respect to certain intangible assets and no indicator of impairment was identified.
The fair value of the reporting units for both goodwill and intangibles was determined utilizing a discounted cashflow model along with inputs from assessing multiples of publicly traded companies.
The key assumptions used in the calculation of fair value included assumptions on growth rates, effective tax rates, operating margins, and the weighted average cost of capital, (“WACC”). Specifically, we calculated the residual value by dividing the residual free cash flow by a capitalization rate equal to the WACC 15.0% (2024 – 14.5%) minus the expected long-term growth rate of the free cash flows 4.0% (2024 – 4.0%). No significant changes have occurred since the impairment test was performed.

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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