HAEMONETICS CORPHAE
HAEMONETICS CORP Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill by operating segment for fiscal 2026 and 2025 are as follows:
| Plasma | Blood Center | Hospital | Total | ||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||
| Carrying amount as of March 30, 2024 | $ | 29,043 | $ | 33,484 | $ | 502,555 | $ | 565,082 | |||||||||||||||
| Divestitures | — | (6,381) | — | (6,381) | |||||||||||||||||||
| Acquisitions | — | — | 69,542 | 69,542 | |||||||||||||||||||
| Purchase accounting adjustments | — | — | (19,248) | (19,248) | |||||||||||||||||||
| Currency translation | — | (136) | (4,590) | (4,726) | |||||||||||||||||||
| Carrying amount as of March 29, 2025 | 29,043 | 26,967 | 548,259 | 604,269 | |||||||||||||||||||
| Acquisitions | — | — | 50,478 | 50,478 | |||||||||||||||||||
| Currency translation | — | (79) | 1,700 | 1,621 | |||||||||||||||||||
| Carrying amount as of March 28, 2026 | $ | 29,043 | $ | 26,888 | $ | 600,437 | $ | 656,368 | |||||||||||||||
The decrease in goodwill of $19.2 million for purchase accounting adjustments in fiscal 2025 was primarily related to the Company obtaining additional facts and information to finalize the pre-acquisition tax returns and associated analyses for OpSens. This resulted in the Company revising its estimate of the net deferred tax liability recorded as of the acquisition date. Refer to Note 3, Acquisitions, Divestitures and Strategic Investments, for additional information regarding the acquisitions of OpSens, Attune Medical and Vivasure.
In the fourth quarter of fiscal 2025, the Company completed the divestiture of its Whole Blood product line within its Blood Center business unit and all related assets and liabilities were sold. The goodwill related to the divestiture of $6.4 million has been removed from the consolidated balance sheets. Refer to Note 3, Acquisitions, Divestitures and Strategic Investments, for additional information regarding the divestiture of its Whole Blood product line.
In fiscal 2026, 2025 and 2024, the results of the annual goodwill impairment test performed indicated that the estimated fair value of all of its reporting units exceeded their respective carrying values, however, in fiscal 2026 the fair value of the Interventional Technologies reporting unit, which is within the Hospital reportable segment, fair value was $867.8 million, which only exceeded its carrying value of $821.6 million by 6%. The fair value of the Interventional Technologies reporting unit was primarily determined using a discounted cash flow approach utilizing a discount rate of 10.5%, which reflects a market-participant weighted average cost of capital based on the risk profile, size, and capital structure of the reporting unit.
The estimation of fair value requires significant judgment and is based primarily on a discounted cash flow approach, supplemented by market-based methods where appropriate. Key assumptions include projected revenue growth rates, operating margins, terminal growth rates, and the discount rate. These inputs are based on management’s expectations of future performance and market conditions and are inherently uncertain.
The Interventional Technologies reporting unit remains sensitive to changes in key assumptions. A decline in projected revenue growth rates, or an increase in the discount rate, could result in the carrying value exceeding fair value.
The Company monitors for goodwill impairment indicators throughout the year, including changes in macroeconomic conditions, industry trends, and business performance. No interim goodwill impairment indicators were identified during fiscal 2026 that required an additional recoverability test.
Although no goodwill impairment was recorded during fiscal 2026, the Interventional Technologies reporting unit remains at risk of future impairment if actual results differ from current estimates or if market conditions deteriorate.
The gross carrying amount of intangible assets and the related accumulated amortization as of March 28, 2026 and March 29, 2025 is as follows:
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life (Years) | ||||||||||||||||||||
| March 28, 2026 | (Dollars in Thousands) | ||||||||||||||||||||||
| Amortizable: | |||||||||||||||||||||||
| Developed technology | $ | 556,631 | $ | 193,114 | $ | 363,517 | 11.6 | ||||||||||||||||
| Customer contracts and related relationships | 130,862 | 76,489 | 54,373 | 11.3 | |||||||||||||||||||
| Capitalized software | 95,880 | 82,284 | 13,596 | 2.9 | |||||||||||||||||||
| Patents and other | 7,422 | 4,613 | 2,809 | 5.5 | |||||||||||||||||||
| Trade names | 14,720 | 7,263 | 7,457 | 10.4 | |||||||||||||||||||
| Total | $ | 805,515 | $ | 363,763 | $ | 441,752 | |||||||||||||||||
| Non-amortizable: | |||||||||||||||||||||||
| In-process software development | 5,903 | ||||||||||||||||||||||
| Total | $ | 5,903 | |||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life (Years) | ||||||||||||||||||||
| March 29, 2025 | (Dollars in Thousands) | ||||||||||||||||||||||
| Amortizable: | |||||||||||||||||||||||
| Developed technology | $ | 506,144 | $ | 156,123 | $ | 350,021 | 12.1 | ||||||||||||||||
| Customer contracts and related relationships | 135,561 | 70,842 | 64,719 | 12.6 | |||||||||||||||||||
| Capitalized software | 85,528 | 76,185 | 9,343 | 6.9 | |||||||||||||||||||
| Patents and other | 19,678 | 6,796 | 12,882 | 8.5 | |||||||||||||||||||
| Trade names | 15,955 | 6,367 | 9,588 | 12.3 | |||||||||||||||||||
| Total | $ | 762,866 | $ | 316,313 | $ | 446,553 | |||||||||||||||||
| Non-amortizable: | |||||||||||||||||||||||
| In-process software development | 9,190 | ||||||||||||||||||||||
| Total | $ | 9,190 | |||||||||||||||||||||
In the second quarter of fiscal 2024, the Company recorded an intangible asset impairment charge of $10.4 million related to the intangibles acquired as part of the enicor GmbH acquisition completed in fiscal 2021 within the Hospital business unit.
During fiscal 2026, the Company recorded total intangible asset impairment charges of $86.5 million. This included a $9.3 million intangible impairment charge in the first half of fiscal 2026 related to the intellectual property associated with the HAS viscoelastic diagnostic devices, related assays and disposables within the Hospital business unit, as acquired from HemoAssay Science and Technology (Suzhou) Co. Ltd., a China-incorporated company, and its affiliates (collectively, “HemoAssay”) in fiscal 2021. The intangible impairment charge was the result of lower revenue projections of the HemoAssay devices and disposables. The fair value as of March 28, 2026 was $0.8 million with a remaining useful life of approximately five years. Additionally, in the fourth quarter of fiscal 2026, the Company recorded an intangible asset impairment charge of $77.2 million related to long-lived intangible assets associated with the acquisition of Attune Medical, which occurred in fiscal 2025 within the Interventional Technologies reporting unit, which is within the Hospital reportable segment. The intangible impairment charge was the result of lower revenue projections, changes in market conditions and declines in operating performance. The fair value as of March 28, 2026 was $11.3 million.
Significant unobservable inputs used in the Level 3 fair value measurement of the HemoAssay intangible assets included projected revenues, costs and the remaining useful lives of the assets. The Level 3 inputs for the Attune Medical included projected revenues, operating margins, and a discount rate reflecting the estimated weighted average cost of capital of a market participant. The revenue and margin assumptions were based on internal forecasts, which incorporate assumptions about future market conditions, product adoption rates, pricing, and competitive dynamics. The discount rate utilized in the valuation of the Attune Medical asset group was 19.8%, which reflects the higher risk profile, earlier stage of commercialization, and greater uncertainty in projected cash flows relative to the broader Interventional Technologies reporting unit. The discount rate was developed using market-based inputs, including a risk-free rate, equity risk premium, and company-specific risk adjustments.
The Company continues to monitor the HemoAssay and Attune Medical asset group for intangible impairment indicators, including macroeconomic conditions, industry trends, and changes in business performance. While the intangible impairment charge recognized reflects management’s best estimate of fair value as of the testing date, it is reasonably possible that changes in assumptions or future business conditions could result in additional impairment charges in future periods.
In the fourth quarter of fiscal 2026, the Company acquired Vivasure and recorded $117.1 million of developed technology based on the purchase accounting valuation. Refer to Note 3, Acquisitions, Divestitures and Strategic Investments, for additional information regarding the Vivasure acquisition.
In the fourth quarter of fiscal 2025, the Company completed the divestiture of its Whole Blood product line within its Blood Center business unit and all related assets and liabilities were sold. The related intangible assets are fully amortized and have a net book value of zero. The gross intangible assets value was $185.6 million. Refer to Note 3, Acquisitions, Divestitures and Strategic Investments, for additional information regarding the divestiture.
Intangible assets include the value assigned to license rights and developed technology, patents, customer contracts and relationships and trade names. The estimated useful lives for all of these intangible assets are approximately 5 to 15 years.
Aggregate amortization expense for amortized intangible assets for fiscal 2026, 2025 and 2024 was $50.5 million, $55.6 million and $41.4 million, respectively.
Amortization expense on intangible assets for the next five years is estimated to be as follows:
| Amortization Expense | ||||||||
| (Dollars in Thousands) | ||||||||
| Fiscal 2027 | $ | 46,864 | ||||||
| Fiscal 2028 | $ | 44,781 | ||||||
| Fiscal 2029 | $ | 43,105 | ||||||
| Fiscal 2030 | $ | 41,836 | ||||||
| Fiscal 2031 | $ | 40,359 | ||||||
For costs incurred related to the development of software to be sold, leased, or otherwise marketed, the Company applies the provisions of ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, which specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. The costs capitalized for each project are included in intangible assets in the consolidated financial statements.
The Company capitalized $6.7 million and $7.7 million in software development costs for ongoing initiatives during fiscal 2026 and 2025, respectively. As of March 28, 2026 and March 29, 2025, the Company had a total of $101.8 million and $94.7 million, respectively, of software costs capitalized, of which $5.9 million and $9.2 million, respectively, are related to in process software development initiatives and the remaining balance represents in-service assets that are being amortized over their useful lives. Amortization expense for capitalized software was $6.1 million, $6.7 million and $8.6 million for fiscal 2026, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 20, 2026 | Showing above |
| 2025 | May 21, 2025 | |
| 2024 | May 20, 2024 | |
| 2023 | May 22, 2023 | |
| 2022 | May 25, 2022 | |
| 2021 | May 26, 2021 | |
| 2020 | May 20, 2020 | |
| 2019 | May 22, 2019 | |
| 2018 | May 23, 2018 | |
| 2017 | May 24, 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.