CBIZ, Inc.CBZ
CBIZ, Inc. Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
A summary of changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2025 and 2024 were as follows (in thousands):
| Financial Services | Benefits and Insurance Services | National Practices | Total Goodwill | ||||||||||||||||||||
| Gross | $ | 591,237 | $ | 324,057 | $ | 33,873 | $ | 949,167 | |||||||||||||||
| Accumulated impairment | (44,047) | (7,733) | (32,207) | (83,987) | |||||||||||||||||||
| Net at December 31, 2023 | $ | 547,190 | $ | 316,324 | $ | 1,666 | $ | 865,180 | |||||||||||||||
| Additions | 1,458,747 | 13,905 | — | 1,472,652 | |||||||||||||||||||
| Divestitures and other adjustments | (6,371) | — | — | (6,371) | |||||||||||||||||||
| Gross | 2,043,613 | 337,962 | 33,873 | 2,415,448 | |||||||||||||||||||
| Accumulated impairment | (44,047) | (7,733) | (32,207) | (83,987) | |||||||||||||||||||
| Net at December 31, 2024 | $ | 1,999,566 | $ | 330,229 | $ | 1,666 | $ | 2,331,461 | |||||||||||||||
| Additions | 1,876 | — | — | 1,876 | |||||||||||||||||||
Other adjustment(1) | (5,814) | 2,276 | — | (3,538) | |||||||||||||||||||
| Gross | 2,039,675 | 340,238 | 33,873 | 2,413,786 | |||||||||||||||||||
| Accumulated impairment | (44,047) | (7,733) | (32,207) | (83,987) | |||||||||||||||||||
| Net at December 31, 2025 | $ | 1,995,628 | $ | 332,505 | $ | 1,666 | $ | 2,329,799 | |||||||||||||||
(1)During the year ended December 31, 2025, we finalized the purchase price allocations related to the Transaction and EIIA acquisition, and recorded $3.5 million in net adjustments to goodwill. Refer to Note 2, Business Combinations, for further discussion.
As discussed in Note 1, Basis of Presentation and Significant Accounting Polices, during the fourth quarter of 2025, we completed certain organizational reporting changes which resulted in a realignment of the reporting units in both the Financial Services and Benefits and Insurance Services practice groups into new reporting units to align with the internal reporting structure and the services provided by the practice groups. As a result of the changes in reporting units, we performed a qualitative assessment immediately before the change in reporting units. We concluded that it was more likely than not the fair values of each of our reporting units immediately before the change exceeded their respective carrying values and, therefore, goodwill related to those reporting units was determined not to be impaired. The change in reporting units resulted in a triggering event. We performed a quantitative assessment immediately after the change in reporting units by comparing the fair value of the reporting unit to its carrying value. In measuring the estimated fair value of each reporting unit, we utilized a combination of an income approach and a market approach. Under the income approach, a discounted cash flow analysis is performed with assumptions and estimates of forecasted operating cash flows, including revenue growth rates, profitability margins, and discount rates, which all vary among reporting units. The market approach utilizes the guideline public company method and is based on revenue and earnings multiple data derived from publicly traded peer group companies. Based on the results of the quantitative assessment, we concluded that the estimated fair values of our reporting units immediately after the change exceeded their respective carrying values and, therefore, goodwill is not impaired. We re-allocated goodwill to each of the new reporting units based on its relative fair value as of the annual test date.
The components of goodwill and other intangible assets, net at December 31, 2025 and 2024 were as follows (in thousands):
| 2025 | 2024 | ||||||||||
| Goodwill | $ | 2,329,799 | $ | 2,331,461 | |||||||
| Intangibles : | |||||||||||
| Client lists | 821,450 | 820,564 | |||||||||
| Other intangibles | 32,481 | 32,481 | |||||||||
| Total intangibles | 853,931 | 853,045 | |||||||||
| Total goodwill and other intangibles assets | 3,183,730 | 3,184,506 | |||||||||
| Accumulated amortization: | |||||||||||
| Client lists | (297,094) | (227,943) | |||||||||
| Other intangibles | (16,846) | (11,093) | |||||||||
| Total accumulated amortization | (313,940) | (239,036) | |||||||||
| Goodwill and other intangible assets, net | $ | 2,869,790 | $ | 2,945,470 | |||||||
Amortization expense for client lists and other intangible assets was $74.9 million, $32.7 million and $23.8 million in 2025, 2024 and 2023, respectively. The weighted-average useful lives of total intangible assets, client lists and other intangible assets were 8.3 years, 8.3 years and 6.3 years, respectively, as of December 31, 2025. Other intangible assets are amortized over periods ranging from 3 to 15 years. Based on the amount of intangible assets subject to amortization at December 31, 2025, the estimated amortization expense is $73.2 million for 2026, $71.2 million for 2027, $64.7 million for 2028, $64.1 million for 2029, $63.4 million for 2030, and $203.5 million thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 8, 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.