Frontdoor, Inc. Goodwill & Intangibles Disclosure
Note 4. Goodwill and Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized and are subject to assessment for impairment on an annual basis, or more frequently if circumstances indicate a potential impairment. We perform our annual assessment for impairment on October 1 of every year.
The balance of goodwill was $959 million and $967 million as of December 31, 2025 and 2024, respectively. During the year ended December 31, 2024, we acquired $457 million of goodwill in connection with the 2-10 HBW Acquisition. See Note 7 for additional information on the 2-10 HBW Acquisition. There were no goodwill impairment charges recorded in the years ended December 31, 2025 and 2024.
The following table provides a summary of the components of our intangible assets:
|
|
As of December 31, |
|
|||||||||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||||||||||||
(In millions) |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
||||||||||||
Trade names(1) |
|
$ |
|
141 |
|
|
$ |
|
— |
|
|
$ |
|
141 |
|
|
$ |
|
141 |
|
|
$ |
|
— |
|
|
$ |
|
141 |
|
Value of business acquired |
|
|
|
148 |
|
|
|
|
(30 |
) |
|
|
|
118 |
|
|
|
|
148 |
|
|
|
|
(1 |
) |
|
|
|
147 |
|
Homeowner relationships |
|
|
|
231 |
|
|
|
|
(183 |
) |
|
|
|
48 |
|
|
|
|
214 |
|
|
|
|
(173 |
) |
|
|
|
41 |
|
Builder relationships |
|
|
|
38 |
|
|
|
|
(13 |
) |
|
|
|
25 |
|
|
|
|
73 |
|
|
|
|
— |
|
|
|
|
72 |
|
Broker relationships |
|
|
|
52 |
|
|
|
|
(18 |
) |
|
|
|
34 |
|
|
|
|
28 |
|
|
|
|
(16 |
) |
|
|
|
13 |
|
Developed technology |
|
|
|
35 |
|
|
|
|
(17 |
) |
|
|
|
18 |
|
|
|
|
35 |
|
|
|
|
(19 |
) |
|
|
|
16 |
|
Other |
|
|
|
32 |
|
|
|
|
(17 |
) |
|
|
|
14 |
|
|
|
|
35 |
|
|
|
|
(17 |
) |
|
|
|
19 |
|
Total |
|
$ |
|
676 |
|
|
$ |
|
(278 |
) |
|
$ |
|
398 |
|
|
$ |
|
673 |
|
|
$ |
|
(225 |
) |
|
$ |
|
448 |
|
During the year ended December 31, 2024, in connection with the 2-10 HBW Acquisition, we acquired the following intangible assets:
|
|
|
|
|
|
|
Weighted Average |
|
||
(In millions) |
|
|
|
|
|
(Years) |
|
|||
Value of business acquired |
|
$ |
|
148 |
|
|
|
|
13 |
|
Homeowner relationships |
|
|
|
58 |
|
|
|
|
6 |
|
Builder relationships |
|
|
|
38 |
|
|
|
|
13 |
|
Broker relationships |
|
|
|
37 |
|
|
|
|
15 |
|
Developed technology |
|
|
|
16 |
|
|
|
|
3 |
|
Other |
|
|
|
15 |
|
|
|
|
9 |
|
Total |
|
$ |
|
312 |
|
|
|
|
|
|
Amortization expense was $53 million, $4 million and $4 million for the years ended December 31, 2025, 2024 and 2023, respectively. There were no intangible asset impairment charges recorded in the years ended December 31, 2025, 2024 and 2023.
The following table outlines expected amortization expense for existing intangible assets for the next five years:
(In millions) |
|
|
|
||
2026 |
|
$ |
|
49 |
|
2027 |
|
|
|
41 |
|
2028 |
|
|
|
35 |
|
2029 |
|
|
|
30 |
|
2030 |
|
|
|
27 |
|
Thereafter |
|
|
|
75 |
|
Total |
|
$ |
|
257 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
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.