Goodwill and Intangible Assets
Changes in the carrying amount of goodwill in the HDMC and LiveWire segments for the years ended December 31, was as follows (in thousands):
| | | | | | | | | | | | | |
| 2024 | | |
| HDMC | LiveWire | Total | | |
| Balance, beginning of period | $ | 54,369 | | $ | 8,327 | | $ | 62,696 | | | |
| | | | | |
| Currency translation | (1,041) | | — | | (1,041) | | | |
| Balance, end of period | $ | 53,328 | | $ | 8,327 | | $ | 61,655 | | | |
| | | | | | | | | | | | | |
| 2023 | | |
| HDMC | LiveWire | Total | | |
| Balance, beginning of period | $ | 53,763 | | $ | 8,327 | | $ | 62,090 | | | |
| | | | | |
| Currency translation | 606 | | — | | 606 | | | |
| Balance, end of period | $ | 54,369 | | $ | 8,327 | | $ | 62,696 | | | |
The HDFS segment had no goodwill at December 31, 2024 or December 31, 2023.
Intangible assets, excluding goodwill, consist primarily of customer relationships and trademarks with useful lives ranging from 3 to 20 years. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Intangible assets are recorded in Other long-term assets on the Consolidated balance sheets. Intangible assets at December 31, were as
follows (in thousands): | | | | | | | | | | | | | |
| 2024 | | 2023 | | |
| Gross carrying amount | $ | 11,889 | | | $ | 12,475 | | | |
| Accumulated amortization | (6,315) | | | (5,447) | | | |
| $ | 5,574 | | | $ | 7,028 | | | |
Amortization of intangible assets, excluding goodwill, recorded in Selling, administrative and engineering expense on the Consolidated statements of operations was $1.1 million, $0.9 million and $0.8 million for 2024, 2023 and 2022, respectively. Future amortization of the Company's intangible assets as of December 31, 2024 is as follows (in thousands): | | | | | |
| 2025 | $ | 1,084 | |
| 2026 | 1,003 | |
| 2027 | 600 | |
| 2028 | 600 | |
| 2029 | 410 | |
| Thereafter | 1,877 | |
| $ | 5,574 | |
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.