BRUNSWICK CORPBC
BRUNSWICK CORP Goodwill & Intangibles Disclosure
Goodwill and Other Intangibles
Changes in the Company's goodwill by segment during the periods ended December 31, 2025 and 2024 are summarized below:
| (in millions) | Propulsion | Engine P&A | Navico Group | Boat | Total | ||||||||||||||||||||||||
| December 31, 2023 | $ | 54.1 | $ | 233.0 | $ | 599.7 | $ | 143.9 | $ | 1,030.7 | |||||||||||||||||||
| Acquisitions | — | — | — | 26.7 | 26.7 | ||||||||||||||||||||||||
| Impairments | — | — | (80.0) | — | (80.0) | ||||||||||||||||||||||||
| Adjustments | (3.3) | (0.4) | (6.3) | (1.3) | (11.3) | ||||||||||||||||||||||||
| December 31, 2024 | $ | 50.8 | $ | 232.6 | $ | 513.4 | $ | 169.3 | $ | 966.1 | |||||||||||||||||||
| Impairments | — | — | (305.8) | — | (305.8) | ||||||||||||||||||||||||
| Adjustments | 3.2 | 0.6 | 16.0 | 1.1 | 20.9 | ||||||||||||||||||||||||
| December 31, 2025 | $ | 54.0 | $ | 233.2 | $ | 223.6 | $ | 170.4 | $ | 681.2 | |||||||||||||||||||
See Note 4 – Acquisitions for further details on the Company's acquisitions. Adjustments in both periods include the effect of foreign currency translation on goodwill denominated in currencies other than the U.S. dollar. In addition adjustments during the year ended December 31, 2025 also include $0.2 million of purchase accounting adjustments from the 2024 Freedom Boat Club acquisition. Adjustments during the year ended December 31, 2024 also include $1.6 million of purchase accounting adjustments from the 2023 Fliteboard and Freedom Boat Club Acquisitions, primarily related to income taxes.
The Company tests goodwill for impairment during the fourth quarter of each year, or whenever a change in events and circumstances (triggering event) occurs that indicates the carrying value of a reporting unit may exceed its fair value. With the 2025 marine retail selling season substantially complete, and a new organizational structure in place for Navico Group during the third quarter of 2025, the Company assessed the current economic and trade environment impact on future results and performed a third quarter goodwill impairment assessment of the Navico Group reporting unit and determined the carrying value exceeded its fair value. We calculate the fair value of our reporting units considering both the income approach and the guideline public company method. As a result of the impairment test, the Company recorded an $305.8 million impairment of the Navico Group reporting unit's goodwill during the year ended December 31, 2025. Following the impairment charge, the Navico Group reporting unit has goodwill assigned to it of $223.6 million as of December 31, 2025 and its fair value approximates its carrying value. The accumulated impairment loss on Goodwill was $385.8 million and $80.0 million as of December 31, 2025 and December 31, 2024, respectively.
The Company's intangible assets, included within Other intangibles, net on the Consolidated Balance Sheets as of December 31, 2025 and 2024, are summarized by intangible asset type below:
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions) | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||||||||
| Intangible assets: | |||||||||||||||||||||||
Customer relationships (A) | $ | 908.1 | $ | (518.1) | $ | 909.4 | $ | (473.5) | |||||||||||||||
| Trade names | 295.2 | — | 304.2 | — | |||||||||||||||||||
Developed technology (A) | 167.4 | (47.1) | 166.8 | (35.6) | |||||||||||||||||||
Other (A) | 138.0 | (88.7) | 113.7 | (66.7) | |||||||||||||||||||
| Total | $ | 1,508.7 | $ | (653.9) | $ | 1,494.1 | $ | (575.8) | |||||||||||||||
(A) The weighted average remaining amortization period for Customer relationships, Developed technology and Other intangibles assets was 8.4, 10.6, and 2.6, respectively, as of December 31, 2025.
Other intangible assets primarily consist of software, patents and franchise agreements. Gross and related accumulated amortization amounts include adjustments related to the impact of foreign currency translation. See Note 4 – Acquisitions for further details on intangibles acquired during 2024. Aggregate amortization expense for intangibles was $78.4 million, $74.8 million and $68.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. The following table is the estimated future amortization expense for intangible assets:
| (in millions) | |||||
| 2026 | $ | 78.4 | |||
| 2027 | 78.4 | ||||
| 2028 | 77.3 | ||||
| 2029 | 76.6 | ||||
| 2030 | 76.6 | ||||
| Thereafter | 172.3 | ||||
The Company tests its intangible assets for impairment during the fourth quarter of each year, or whenever a change in events and circumstances (triggering event) occurs that indicates the fair value of intangible assets may be below their carrying values. The Company recorded impairment charges of $16.7 million during the year ended December 31, 2025 related to various Navico Group intangible assets. The Company recorded $5.0 million of impairment charges during the year ended December 31, 2024 related to the Navico trade name as a result of unfavorable movements in the underlying inputs impacting the discount rate. The Company recorded $16.6 million of impairment charges during the year ended December 31, 2023, including a $13.0 million impairment of its Navico trade name as a result of declines in forecasted revenues primarily driven by macroeconomic factors and a decline in market conditions and a $3.0 million impairment associated with the decision to no longer go to market under the Garelick trade name.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 17, 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.