GRAHAM CORP Goodwill & Intangibles Disclosure
Note 6 – Intangible Assets:
Intangible assets are comprised of the following:
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|
Weighted Average Amortization Period |
|
Gross Carrying Amount |
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Accumulated Amortization |
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Net Carrying Amount |
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At March 31, 2025 |
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Intangibles subject to amortization: |
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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 |
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|
|
|
|
$ |
33,000 |
|
|
$ |
9,373 |
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|
$ |
23,627 |
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Intangibles not subject to amortization: |
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Goodwill |
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Indefinite |
|
$ |
25,520 |
|
|
$ |
— |
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|
$ |
25,520 |
|
Tradename |
|
Indefinite |
|
|
6,700 |
|
|
|
— |
|
|
|
6,700 |
|
|
|
|
|
$ |
32,220 |
|
|
$ |
— |
|
|
$ |
32,220 |
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|
|
Weighted Average Amortization Period |
|
Gross Carrying Amount |
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|
Accumulated Amortization |
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|
Net Carrying Amount |
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At March 31, 2024 |
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Intangibles subject to amortization: |
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|
|
|
|
|
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|
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Customer relationships |
|
8 - 20 years |
|
$ |
16,200 |
|
|
$ |
1,901 |
|
|
$ |
14,299 |
|
Technology and technical know-how |
|
10 - 20 years |
|
|
12,600 |
|
|
|
1,535 |
|
|
|
11,065 |
|
Backlog |
|
4 years |
|
|
3,900 |
|
|
|
3,677 |
|
|
|
223 |
|
Tradename |
|
3 years |
|
|
300 |
|
|
|
42 |
|
|
|
258 |
|
|
|
|
|
$ |
33,000 |
|
|
$ |
7,155 |
|
|
$ |
25,845 |
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Intangibles not subject to amortization: |
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|
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Goodwill |
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Indefinite |
|
$ |
25,520 |
|
|
$ |
— |
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|
$ |
25,520 |
|
Tradename |
|
Indefinite |
|
|
6,700 |
|
|
|
— |
|
|
|
6,700 |
|
|
|
|
|
$ |
32,220 |
|
|
$ |
0 |
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|
$ |
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 $2,218, $2,157 and $2,476 for fiscal 2025, fiscal 2024 and fiscal 2023, respectively. The estimated annual amortization expense is as follows:
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|
Annual Amortization |
|
|
2026 |
|
$ |
1,995 |
|
2027 |
|
|
1,953 |
|
2028 |
|
|
1,895 |
|
2029 |
|
|
1,895 |
|
2030 |
|
|
1,895 |
|
2031 and thereafter |
|
|
13,994 |
|
Total intangible amortization |
|
$ |
23,627 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 9, 2025 | Showing above |
| 2024 | Jun 7, 2024 | |
| 2021 | Jun 2, 2021 | |
| 2020 | Jun 15, 2020 | |
| 2019 | May 31, 2019 | |
| 2018 | Jun 4, 2018 | |
| 2017 | Jun 5, 2017 | |
| 2016 | Jun 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.