GCI Liberty, Inc. Goodwill & Intangibles Disclosure
(4) Goodwill and Intangible Assets
Goodwill and Indefinite Lived Assets
Goodwill | Total |
| ||||||||
| amounts in millions | |||||||||
Balance at December 31, 2023 | $ | 746 | 550 | 41 | 1,337 | |||||
Balance at December 31, 2024 | 746 |
| 550 | 41 |
| 1,337 | ||||
(108) | (401) | (16) | (525) | |||||||
Balance at December 31, 2025 | $ | 638 | 149 | 25 | 812 | |||||
As presented in the accompanying consolidated balance sheets, wireless licenses are the majority of the other significant indefinite lived intangible assets.
Intangible Assets Subject to Amortization, net
| December 31, 2025 | | December 31, 2024 |
| |||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying |
| |||||||||
| amount | | amortization | | amount | | amount | | amortization | | amount |
| |||
amounts in millions |
| ||||||||||||||
Customer relationships | $ | 515 |
| (215) |
| 300 | 515 |
| (173) |
| 342 | ||||
Other amortizable intangible assets |
| 184 |
| (112) |
| 72 |
| 165 |
| (96) |
| 69 | |||
Total | $ | 699 |
| (327) |
| 372 | 680 |
| (269) |
| 411 | ||||
Intangible assets are being amortized generally on an accelerated basis as reflected in amortization expense and in the future amortization table below.
Amortization expense for intangible assets with finite useful lives was $57 million and $60 million for the years ended December 31, 2025 and 2024, respectively. Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in millions):
2026 | $ | 56 | ||
2027 | $ | 53 | ||
2028 | $ | 51 | ||
2029 | $ | 45 | ||
2030 | $ | 39 |
Impairments
During the third quarter of 2025, management determined it was more likely than not that the fair value of GCI Liberty and certain of its indefinite-lived intangibles assets were less than their carrying values based on the trading price of its common stock and updated long-term forecasts for the business. With the assistance of a third-party specialist, the fair value of the cable certificates, other indefinite-lived intangible assets, and the overall fair value of the Company were primarily determined using discounted cash flow models that incorporated projections of future operating performance (income approach) (Level 3). Impairments in the amounts of $108 million for goodwill, $401 million for cable certificates and $16 million for other indefinite-lived intangible assets were recorded during the year ended December 31, 2025, in the Impairment of goodwill and intangible assets line item in the consolidated statements of operations.
Based on these assessments performed during the third quarter of 2025 and the resulting impairment losses recorded, the estimated fair value of the cable certificates, other indefinite-lived intangible assets, and the overall fair value of the Company did not significantly exceed its carrying value as of December 31, 2025. As of December 31, 2025, the Company had accumulated goodwill impairment losses of $108 million.
The Company recorded no impairments during the year ended December 31, 2024.
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.