Cable One, Inc.CABO

Cable One, Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 26, 20262 min read
GOODWILL AND INTANGIBLE ASSETS
During the second quarter of 2025, the Company determined that a triggering event had occurred that required interim impairment assessments of its indefinite-lived intangible asset and goodwill.
Based on qualitative assessments of its finite-lived intangible assets, no impairments of such assets were identified. Using the multi-period excess earnings method of the income approach, whose significant inputs and assumptions include forecasted revenues, subscriber attrition rates, margins, capital expenditures, contributory asset charges, income tax rates, long-term growth rates and a discount rate, to determine fair value, the Company's franchise agreements asset was determined to be impaired by $497.2 million. Using i) the discounted cash flow method of the income approach, whose significant inputs and assumptions include forecasted revenues, margins, capital expenditures, working capital levels, income tax rates, long-term growth rates and a discount rate, and ii) the guideline public company method of the market approach, whose significant inputs and assumptions include the identification of appropriate market participants; consensus earnings before interest, taxes, depreciation and amortization estimates; and the selection of enterprise value multiples, the Company's goodwill was determined to be impaired by $88.8 million. These non-cash charges are included within asset impairments in the consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2025.
The Company performed qualitative assessments for its annual impairment test during the fourth quarter of 2025, identifying no additional impairments.
The change in the Company's goodwill was as follows (in thousands):
Goodwill
Balance at December 31, 2024$929,609 
Impairment charge(88,783)
Balance at December 31, 2025$840,826 
Aside from the impairments recognized in 2025 discussed above, the Company has not historically recorded any other intangible asset or goodwill impairments.
Intangible assets consisted of the following (dollars in thousands):
December 31, 2025December 31, 2024
Useful Life
Range
(in years)		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Finite-Lived Intangible Assets
Customer relationships
13.5 - 17
$785,203 $419,231 $365,972 $785,203 $359,432 $425,771 
Trademarks and trade names
2.0 - 4.2
8,389 8,385 4 8,389 7,400 989 
Wireless licenses
10
4,794 1,411 3,383 4,793 931 3,862 
Total finite-lived intangible assets$798,386 $429,027 $369,359 $798,385 $367,763 $430,622 
Indefinite-Lived Intangible Asset
Franchise agreements$1,605,000 $2,102,233 
Total intangible assets, net$1,974,359 $2,532,855 
Intangible asset amortization expense was $61.3 million, $66.2 million and $73.5 million in 2025, 2024 and 2023, respectively.
The future amortization of existing finite-lived intangible assets as of December 31, 2025 is as follows (in thousands):
Year Ending December 31,Amount
2026$55,733 
202751,841 
202848,242 
202947,038 
203045,017 
Thereafter121,487 
Total$369,359 
Actual amortization expense in future periods may differ from the amounts above as a result of intangible asset acquisitions or divestitures, changes in useful life estimates, impairments or other relevant factors.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2016Mar 1, 2017
2015Mar 7, 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.

Other Available Disclosures

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