GENERAC HOLDINGS INC. Goodwill & Intangibles Disclosure
| 9. | Goodwill and Intangible Assets |
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 are as follows:
| Domestic | International | Total | ||||||||||
| Balance as of December 31, 2023 | $ | 1,018,528 | $ | 413,856 | $ | 1,432,384 | ||||||
| Acquisitions of businesses, net | 22,641 | - | 22,641 | |||||||||
| Foreign currency translation rate changes | (22 | ) | (18,742 | ) | (18,764 | ) | ||||||
| Balance as of December 31, 2024 | 1,041,147 | 395,114 | 1,436,261 | |||||||||
| Purchase accounting adjustments | (6,182 | ) | 310 | (5,872 | ) | |||||||
| Foreign currency translation rate changes | 112 | 36,593 | 36,705 | |||||||||
| Balance as of December 31, 2025 | $ | 1,035,077 | $ | 432,017 | $ | 1,467,094 | ||||||
Refer to Note 3, “Acquisitions,” to the consolidated financial statements of this Annual Report on Form 10-K for further information regarding the Company’s acquisitions.
Goodwill applicable to each reportable segment as of December 31, 2025 and 2024 is as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| Gross | Accumulated Impairment | Net | Gross | Accumulated Impairment | Net | |||||||||||||||||||
| Domestic | $ | 1,538,270 | $ | (503,193 | ) | $ | 1,035,077 | $ | 1,544,340 | $ | (503,193 | ) | $ | 1,041,147 | ||||||||||
| International | 436,628 | (4,611 | ) | 432,017 | 399,725 | (4,611 | ) | 395,114 | ||||||||||||||||
| Total | $ | 1,974,898 | $ | (507,804 | ) | $ | 1,467,094 | $ | 1,944,065 | $ | (507,804 | ) | $ | 1,436,261 | ||||||||||
The following table summarizes intangible assets by major category as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||
| Weighted Average Amortization Years | Gross | Accumulated Amortization | Net Book Value | Gross | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||
| Finite-lived intangible assets: | ||||||||||||||||||||||||||||
| Tradenames | 15 | $ | 162,098 | $ | (89,942 | ) | $ | 72,156 | $ | 160,473 | $ | (81,083 | ) | $ | 79,390 | |||||||||||||
| Customer lists | 13 | 602,526 | (475,009 | ) | 127,517 | 591,745 | (439,008 | ) | 152,737 | |||||||||||||||||||
| Patents and technology | 14 | 678,953 | (340,645 | ) | 338,308 | 673,425 | (294,330 | ) | 379,095 | |||||||||||||||||||
| Software | - | 1,046 | (1,046 | ) | - | 1,046 | (1,046 | ) | - | |||||||||||||||||||
| Non-compete/other | 5 | 76,568 | (66,557 | ) | 10,011 | 76,251 | (56,225 | ) | 20,026 | |||||||||||||||||||
| Total finite-lived intangible assets | $ | 1,521,191 | $ | (973,199 | ) | $ | 547,992 | $ | 1,502,940 | $ | (871,692 | ) | $ | 631,248 | ||||||||||||||
| Indefinite-lived tradenames | 127,274 | - | 127,274 | 127,274 | - | 127,274 | ||||||||||||||||||||||
| Total intangible assets | $ | 1,648,465 | $ | (973,199 | ) | $ | 675,266 | $ | 1,630,214 | $ | (871,692 | ) | $ | 758,522 | ||||||||||||||
Amortization expense of intangible assets was $101,507, $97,743, and $104,194 in 2025, 2024 and 2023, respectively. Excluding the impact of future acquisitions or divestitures, the Company estimates amortization expense for the next five years to be as follows: 2026 - 2027 - 2028 - 2029 - 2030 - $43,998.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 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.