Gogo Inc. Goodwill & Intangibles Disclosure
8. Goodwill and Other Intangible Assets
Our intangible assets are comprised of both indefinite-lived and finite-lived intangible assets and goodwill. We own the rights to ATG spectrum in the nationwide 800 MHz Commercial Air-Ground Radiotelephone band (the “FCC Licenses”), which are used in
the operation of our ATG network. The FCC Licenses were originally issued with 10-year terms and we have renewed the licenses for subsequent 10-year terms. Such licenses are subject to further renewal by the FCC, and renewals of licenses held by others have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of the FCC Licenses. As a result, the FCC Licenses are treated as indefinite-lived intangible assets which we do not amortize. We reevaluate the useful life of the FCC Licenses each year to determine whether events and circumstances continue to support an indefinite useful life. Our annual impairment assessment of the FCC Licenses for 2025, 2024 and 2023 indicated no impairment.
Our software relates to the development of internal use software which is used to run our network and support our service offerings. Software also includes software embedded in the equipment that we sell to our customers.
Changes in the carrying value of goodwill during the years ended December 31, 2025 and 2024 were as follows (in thousands):
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Total |
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Balance at January 1, 2024 |
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$ |
620 |
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Activity in 2024 |
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|
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Acquisitions |
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184,211 |
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Balance at December 31, 2024 |
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|
184,831 |
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Activity in 2025 |
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|
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Measurement period adjustments |
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|
8,356 |
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Balance at December 31, 2025 |
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$ |
193,187 |
|
Refer to Note 2, “Acquisition of Satcom Direct,” for further information on the acquisition-related goodwill balance and measurement period adjustments.
Our intangible assets, other than goodwill, as of December 31, 2025 and 2024 were as follows (in thousands):
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As of December 31, 2025 |
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As of December 31, 2024 |
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Gross |
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Net |
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Gross |
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Net |
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Carrying |
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Accumulated |
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Carrying |
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Carrying |
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Accumulated |
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Carrying |
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Amount |
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Amortization |
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Amount |
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Amount |
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Amortization |
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Amount |
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Amortized intangible assets(1): |
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Software |
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$ |
141,942 |
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$ |
(55,524 |
) |
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$ |
86,418 |
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$ |
132,673 |
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$ |
(47,225 |
) |
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$ |
85,448 |
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Service customer relationships |
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152,681 |
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|
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(39,410 |
) |
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|
113,271 |
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152,681 |
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(10,491 |
) |
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142,190 |
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OEM and dealer relationships |
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17,024 |
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(8,119 |
) |
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8,905 |
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17,024 |
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(6,831 |
) |
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10,193 |
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Other |
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10,373 |
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(1,468 |
) |
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8,905 |
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5,270 |
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(53 |
) |
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5,217 |
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Total amortized intangible assets |
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322,020 |
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(104,521 |
) |
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217,499 |
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307,648 |
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(64,600 |
) |
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243,048 |
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Unamortized intangible assets: |
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FCC Licenses |
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31,319 |
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— |
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31,319 |
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32,283 |
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— |
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32,283 |
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Total intangible assets |
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$ |
353,339 |
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$ |
(104,521 |
) |
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$ |
248,818 |
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|
$ |
339,931 |
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|
$ |
(64,600 |
) |
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$ |
275,331 |
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Amortization expense for the years ended December 31, 2025, 2024 and 2023 was $39.9 million, $3.9 million and $2.0 million, respectively.
Amortization expense for each of the next five years and thereafter is estimated to be as follows (in thousands):
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Amortization |
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Years ending December 31, |
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Expense |
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2026 |
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$ |
42,728 |
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2027 |
|
$ |
43,600 |
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2028 |
|
$ |
43,585 |
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2029 |
|
$ |
40,916 |
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2030 |
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$ |
13,737 |
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Thereafter |
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$ |
32,933 |
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Actual future amortization expense could differ from the estimated amount as the result of future investments and other factors.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
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.