BENCHMARK ELECTRONICS INC Goodwill & Intangibles Disclosure
Note 4—Goodwill and Other Intangible Assets
Goodwill allocated to the Company’s reportable operating segments follows:
(in thousands) |
|
Americas |
|
|
Asia |
|
|
Total |
|
|||
Goodwill as of December 31, 2025 and December 31, 2024 |
|
$ |
154,014 |
|
|
$ |
38,102 |
|
|
$ |
192,116 |
|
A summary of the Company's acquired identifiable intangible assets and capitalized purchased software costs follows:
(in thousands) |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||
Customer relationships |
|
$ |
100,176 |
|
|
$ |
(81,603 |
) |
|
$ |
18,573 |
|
Capitalized purchased software costs |
|
|
42,105 |
|
|
|
(30,121 |
) |
|
|
11,984 |
|
Technology licenses |
|
|
15,500 |
|
|
|
(15,500 |
) |
|
|
— |
|
Trade names and trademarks |
|
|
7,800 |
|
|
|
— |
|
|
|
7,800 |
|
Other |
|
|
868 |
|
|
|
(452 |
) |
|
|
416 |
|
Total intangible assets as of December 31, 2025 |
|
$ |
166,449 |
|
|
$ |
(127,676 |
) |
|
$ |
38,773 |
|
(in thousands) |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||
Customer relationships |
|
$ |
100,041 |
|
|
$ |
(76,675 |
) |
|
$ |
23,366 |
|
Capitalized purchased software costs |
|
|
44,316 |
|
|
|
(31,525 |
) |
|
|
12,791 |
|
Technology licenses |
|
|
15,500 |
|
|
|
(15,500 |
) |
|
|
— |
|
Trade names and trademarks |
|
|
7,800 |
|
|
|
— |
|
|
|
7,800 |
|
Other |
|
|
868 |
|
|
|
(428 |
) |
|
|
440 |
|
Total intangible assets as of December 31, 2024 |
|
$ |
168,525 |
|
|
$ |
(124,128 |
) |
|
$ |
44,397 |
|
During 2025, 2024 and 2023, additions to capitalized purchased software costs were $2.9 million, $1.9 million and $4.3 million, respectively.
A summary of the components of amortization expense, as presented in the consolidated statements of cash flows, follows:
|
|
Year Ended |
|
|||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Amortization of intangible assets |
|
$ |
4,817 |
|
|
$ |
4,817 |
|
|
$ |
5,979 |
|
Amortization of capitalized purchased software costs |
|
|
4,613 |
|
|
|
4,897 |
|
|
|
4,564 |
|
Amortization of debt costs |
|
|
767 |
|
|
|
519 |
|
|
|
499 |
|
Total amortization expense |
|
$ |
10,197 |
|
|
$ |
10,233 |
|
|
$ |
11,042 |
|
A summary of the future amortization expense related to the Company's intangible assets held as of December 31, 2025 for each of the next five years follows (in thousands):
Year ending December 31, |
|
Amortization |
|
|
2026 |
|
$ |
4,817 |
|
2027 |
|
|
4,817 |
|
2028 |
|
|
4,817 |
|
2029 |
|
|
4,218 |
|
2030 |
|
|
23 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 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.