Note 6 – Intangible Assets:

Intangible assets are comprised of the following:

 

 

 

Weighted Average Amortization Period

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

At March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

Intangibles subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

8 - 20 years

 

$

19,600

 

 

$

4,228

 

 

$

15,372

 

Technology and technical know-how

 

9 - 20 years

 

 

26,550

 

 

 

3,318

 

 

 

23,232

 

Tradename

 

3 years

 

 

300

 

 

 

242

 

 

 

58

 

 

 

 

 

$

46,450

 

 

$

7,788

 

 

$

38,662

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

Indefinite

 

$

38,078

 

 

$

 

 

$

38,078

 

Tradename

 

Indefinite

 

 

13,400

 

 

 

 

 

 

13,400

 

 

 

 

 

$

51,478

 

 

$

 

 

$

51,478

 

 

 

 

Weighted Average Amortization Period

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

At March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

Intangibles subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

8 - 20 years

 

$

16,200

 

 

$

3,041

 

 

$

13,159

 

Technology and technical know-how

 

10 - 20 years

 

 

12,600

 

 

 

2,290

 

 

 

10,310

 

Backlog

 

4 years

 

 

3,900

 

 

 

3,900

 

 

 

 

Tradename

 

3 years

 

 

300

 

 

 

142

 

 

 

158

 

 

 

 

 

$

33,000

 

 

$

9,373

 

 

$

23,627

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

Indefinite

 

$

25,520

 

 

$

 

 

$

25,520

 

Tradename

 

Indefinite

 

 

6,700

 

 

 

 

 

 

6,700

 

 

 

 

 

$

32,220

 

 

$

 

 

$

32,220

 

 

A portion of Technology and technical know-how, tradenames, and Customer relationships are amortized in Selling, general and administrative expense on a straight line basis over each of their estimated useful lives. Backlog and a portion of technology and technical know-how are amortized in Cost of products sold over the projected conversion period based on management estimates at time of purchase. Intangible asset amortization was $2,315, $2,218 and $2,157 for fiscal 2026, fiscal 2025 and fiscal 2024, respectively. Inventory step up amortization of $191 was expensed in fiscal 2026 for the FlackTek acquisition. The estimated annual amortization expense is as follows:

 

 

 

Annual Amortization

 

2027

 

$

3,780

 

2028

 

 

3,721

 

2029

 

 

3,721

 

2030

 

 

3,721

 

2031

 

 

3,721

 

2032 and thereafter

 

 

19,998

 

Total intangible amortization

 

$

38,662

 

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Historical Timeline

Fiscal YearFiled
2026Jun 8, 2026Showing above
2025Jun 9, 2025
2024Jun 7, 2024
2021Jun 2, 2021
2020Jun 15, 2020
2019May 31, 2019
2018Jun 4, 2018
2017Jun 5, 2017
2016Jun 1, 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.