COHERENT CORP.COHR

COHERENT CORP. Goodwill & Intangibles Disclosure

10-KFiled Aug 15, 20253 min read
Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill were as follows ($000):
Year Ended June 30, 2025
NetworkingMaterialsLasersTotal
Balance at beginning of period$1,036,592 $245,983 $3,181,754 $4,464,329 
Other reclassifications (See Note 21)— (8,577)(165,796)(174,373)
Foreign currency translation and other1,847 4,061 175,220 181,128 
Balance-end of period$1,038,439 $241,467 $3,191,178 $4,471,084 
Year Ended June 30, 2024
NetworkingMaterialsLasersTotal
Balance-beginning of period$1,036,204 $247,695 $3,228,801 $4,512,700 
Foreign currency translation and other388 (1,712)(47,047)(48,371)
Balance-end of period$1,036,592 $245,983 $3,181,754 $4,464,329 
The gross carrying amount and accumulated amortization of our intangible assets other than goodwill as of June 30, 2025 and 2024 were as follows ($000):
June 30, 2025June 30, 2024
Gross
Carrying
Amount		Accumulated
Amortization		Net
Book Value		Gross
Carrying
Amount		Accumulated
Amortization		Net
Book Value
Technology$1,534,066 $(513,181)$1,020,885 $1,653,289 $(394,040)$1,259,249 
Trade Names438,471 (8,471)430,000 438,470 (8,470)430,000 
Customer Lists2,440,834 (686,972)1,753,862 2,310,550 (498,252)1,812,298 
Backlog and Other90,121 (90,121)— 88,792 (87,092)1,700 
Total$4,503,492 $(1,298,745)$3,204,747 $4,491,101 $(987,854)$3,503,247 
Amortization expense recorded on the intangible assets for the fiscal years ended June 30, 2025, 2024 and 2023 was $303 million, $288 million, and $414 million, respectively. The technology intangible assets are being amortized over a range of 60 to 240 months with a weighted-average remaining life of approximately 116 months, and the amortization is recorded in Cost of goods sold in our Consolidated Statements of Earnings (Loss). The customer lists are being amortized over 60 to 192 months with a weighted-average remaining life of approximately 138 months, and the amortization is recorded in SG&A in our Consolidated Statements of Earnings (Loss).
Amortization expense in the fiscal year ended June 30, 2025 includes a total of $17 million of impairment charges in the Materials segment related to the abandonment of certain purchased technology and licenses, with $14 million recorded in cost of goods sold and $3 million recorded in R&D in our Consolidated Statements of Earnings (Loss). There were no impairment charges included in amortization expense in the fiscal year ended June 30, 2024.
Amortization expense in the fiscal year ended June 30, 2023 includes a total of $39 million of impairment charges, with $33 million in the Materials segment and $7 million in the Networking segment. $25 million of the impairment charges related to the abandonment of certain purchased technology and customer lists, with $8 million recorded in Cost of goods sold and $18 million recorded in SG&A in our Consolidated Statement of Earnings (Loss). $14 million of impairment charges, recorded in SG&A, related to the abandonment of indefinite-lived trade names primarily due to the fiscal 2023 rebranding of the Company as Coherent Corp.
In the fourth quarter of fiscal year 2025, we completed our impairment test of our $430 million indefinite-lived Coherent trade name acquired in the Merger, concluding it was not impaired.
The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000):
Year Ending June 30,
2026$282,869 
2027281,618 
2028279,930 
2029273,718 
2030251,603 

Historical Timeline

Fiscal YearFiled
2025Aug 15, 2025Showing above
2024Aug 16, 2024
2023Aug 18, 2023
2022Aug 29, 2022
2021Aug 20, 2021
2020Aug 26, 2020
2019Aug 16, 2019
2018Aug 28, 2018
2017Aug 21, 2017
2016Aug 26, 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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