Enovis CORPENOV
Enovis CORP Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
The following table summarizes the activity in Goodwill, by segment during the years ended December 31, 2025 and 2024:
| Prevention & Recovery | Reconstructive | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Balance, January 1, 2024 | $ | 1,101,495 | $ | 959,398 | $ | 2,060,893 | |||||||||||
Goodwill attributable to acquisitions (1) | — | 320,375 | 320,375 | ||||||||||||||
| Goodwill impairment | (315,000) | (330,000) | (645,000) | ||||||||||||||
| Impact of foreign currency translation | (18,633) | (24,926) | (43,559) | ||||||||||||||
| Balance, December 31, 2024 | 767,862 | 924,847 | 1,692,709 | ||||||||||||||
Goodwill attributable to divestiture (2) | (18,823) | — | (18,823) | ||||||||||||||
| Goodwill impairment | (379,833) | (662,006) | (1,041,839) | ||||||||||||||
| Impact of foreign currency translation | 31,725 | 54,527 | 86,252 | ||||||||||||||
| Balance, December 31, 2025 | $ | 400,931 | $ | 317,368 | $ | 718,299 | |||||||||||
(1) Includes purchase accounting adjustments associated with acquisitions discussed in Note 5 “Acquisitions and Divestitures.”
(2) As a result of the Dr Comfort Divestiture, the Company allocated a portion of the P&R goodwill to the Dr Comfort assets. The divestiture was completed on October 7, 2025. Includes the impairment from the sale totaling $7.9 million, which is reflected within the Goodwill impairment charge on the Consolidated Statements of Operations. See Note 5 “Acquisitions and Divestitures” for further information.
The Company performed a quantitative impairment test as of December 31, 2025 and determined the carrying value of each of the P&R and Recon reporting units exceeded their fair value due to a sustained decrease in our publicly quoted share price and market capitalization relative to the carrying values. As a result, the Company recognized a non-cash Goodwill impairment charge of $501.0 million ($157.6 million for the P&R reporting unit and $343.4 million for the Recon reporting unit). The Company performed an interim quantitative impairment test as of October 3, 2025 and determined the carrying value of each of the Prevention & Recovery and Reconstructive reporting units exceeded their fair values. As a result, the Company recognized a non-cash goodwill impairment charge of $540.8 million in the quarter ended October 3, 2025 ($222.3 million for the P&R reporting unit and $318.6 million for the Recon reporting unit). Including the charges from the year ended December 31, 2024, the accumulated non-cash goodwill impairment loss is $1,686.8 million ($694.8 million for the Prevention & Recovery reporting unit and $992.0 million for the Recon reporting unit). See Note 2 “Summary of Significant Accounting Policies - Impairment of Goodwill and Indefinite-Lived Intangible Assets” for further information regarding impairment of Goodwill.
The following table summarizes the Company’s Intangible assets, excluding Goodwill:
| Year Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Definite-Lived Intangible Assets | |||||||||||||||||||||||
| Acquired customer relationships | $ | 701,091 | $ | (400,630) | $ | 681,594 | $ | (343,441) | |||||||||||||||
| Acquired technology | 842,452 | (319,201) | 776,567 | (246,292) | |||||||||||||||||||
| Acquired trade names | 489,567 | (141,087) | 498,013 | (121,687) | |||||||||||||||||||
| Software | 108,558 | (56,694) | 102,887 | (49,352) | |||||||||||||||||||
| Other intangible assets | 35,311 | (22,654) | 32,081 | (12,941) | |||||||||||||||||||
| $ | 2,176,979 | $ | (940,266) | $ | 2,091,142 | $ | (773,713) | ||||||||||||||||
Amortization expense related to acquired intangible assets, including acquired customer relationships, acquired technology, and acquired trade names, are presented on the face of the Consolidated Statements of Operations. Other intangible assets amortization expense consists primarily of amortization of software intangibles and is recorded as a component of Selling, general, and administrative expense in the Consolidated Statements of Operations. Total amortization expense is $184.5 million, $172.2 million, and $140.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
See Note 2 “Summary of Significant Accounting Policies” for discussion regarding impairment of Intangible assets.
Expected Amortization Expense
The Company’s expected annual amortization expense for intangible assets for the next five years is as follows:
| December 31, 2025 | |||||
| (In thousands) | |||||
| 2026 | $ | 182,538 | |||
| 2027 | 170,243 | ||||
| 2028 | 132,629 | ||||
| 2029 | 115,770 | ||||
| 2030 | 106,982 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 14, 2017 | |
| 2015 | Feb 16, 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.