Cars.com Inc. Goodwill & Intangibles Disclosure
Note 5. Goodwill and Other Intangible Assets, net
Goodwill and Indefinite-Lived Intangible Asset Summary. The changes in the carrying amount of goodwill and indefinite-lived intangible asset are as follows (in thousands):
|
|
Goodwill |
|
|
Cars.com |
|
||
December 31, 2023 |
|
$ |
147,058 |
|
|
$ |
390,020 |
|
Foreign currency translation adjustment |
|
|
(3,479 |
) |
|
|
— |
|
Other adjustments |
|
|
(300 |
) |
|
|
— |
|
December 31, 2024 |
|
$ |
143,279 |
|
|
$ |
390,020 |
|
Additions (1) |
|
|
21,980 |
|
|
|
— |
|
Foreign currency translation adjustment |
|
|
1,948 |
|
|
|
— |
|
December 31, 2025 |
|
$ |
167,207 |
|
|
$ |
390,020 |
|
Goodwill and Indefinite-Lived Intangible Asset Impairment Test. The Company performed impairment tests for goodwill and the indefinite-lived intangible asset. The Company performed a qualitative assessment that considers events and circumstances such as macroeconomic conditions, industry and market conditions, cost factors and overall financial performance, as well as company specific facts and circumstances. After performing this assessment, the Company concluded there were no indicators of impairment and therefore, the Company did not perform a quantitative test and did not record an impairment to goodwill or the indefinite-lived intangible asset during any of the three years ending December 31, 2025, 2024 and 2023.
Definite Lived Intangible Assets. The Company’s definite-lived intangible assets by major asset class are as follows (in thousands):
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||||||||||||||||||||||
|
|
Weighted Average Remaining Useful Life (years) |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||||||
Customer relationships |
|
|
5.1 |
|
|
$ |
859,086 |
|
|
$ |
(739,817 |
) |
|
$ |
119,269 |
|
|
$ |
857,733 |
|
|
$ |
(687,163 |
) |
|
$ |
170,570 |
|
Acquired software |
|
|
2.2 |
|
|
|
85,508 |
|
|
|
(71,917 |
) |
|
|
13,591 |
|
|
|
82,386 |
|
|
|
(63,102 |
) |
|
|
19,284 |
|
Other trade names |
|
|
3.1 |
|
|
|
26,975 |
|
|
|
(22,773 |
) |
|
|
4,202 |
|
|
|
26,941 |
|
|
|
(21,125 |
) |
|
|
5,816 |
|
Content library |
|
|
|
|
|
2,100 |
|
|
|
(2,100 |
) |
|
|
— |
|
|
|
2,100 |
|
|
|
(2,100 |
) |
|
|
— |
|
|
Total |
|
|
|
|
$ |
973,669 |
|
|
$ |
(836,607 |
) |
|
$ |
137,062 |
|
|
$ |
969,160 |
|
|
$ |
(773,490 |
) |
|
$ |
195,670 |
|
|
As of December 31, 2025, projected annual amortization expense for amortizable intangible assets is as follows (in thousands):
2026 |
|
$ |
41,534 |
|
2027 |
|
|
35,278 |
|
2028 |
|
|
29,085 |
|
2029 |
|
|
14,335 |
|
2030 |
|
|
2,292 |
|
Thereafter |
|
|
14,538 |
|
Total |
|
$ |
137,062 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 6, 2018 | |
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.