Intangible Assets and Goodwill
All intangible assets determined to have finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. The $69.5 million of other intangibles, net recorded in the consolidated balance sheet at December 31, 2025 includes $12.6 million of indefinite lived trade name intangible assets, not subject to amortization, along with $56.9 million finite lived intangible assets, net. As a result of the integration and rebranding of the U.S. operations of CFI into Heartland Express we recognized a CFI trade name impairment of $19.0 million which was the only change in the gross amount of identifiable intangible assets during the twelve months ended December 31, 2025.
Amortization expense of $5.0 million, $5.0 million and $5.2 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively, was included in depreciation and amortization in the consolidated statements of comprehensive income.
Intangible assets subject to amortization consisted of the following at December 31, 2025 and 2024:
| | | | | | | | | | | | | | | | | | | | | | | |
| 2025 |
| Amortization period (years) | | Gross Amount | | Accumulated Amortization | | Net finite intangible assets |
| | | (in thousands) |
| Customer relationships | 15-20 | | $ | 75,836 | | | $ | 21,274 | | | $ | 54,562 | |
| Trade name | 0.5-10 | | 12,900 | | | 11,140 | | | 1,760 | |
| Covenants not to compete | 1-10 | | 5,839 | | | 5,282 | | | 557 | |
| | | $ | 94,575 | | | $ | 37,696 | | | $ | 56,879 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| 2024 |
| Amortization period (years) | | Gross Amount | | Accumulated Amortization | | Net finite intangible assets |
| | | (in thousands) |
| Customer relationships | 15-20 | | $ | 75,836 | | | $ | 16,955 | | | $ | 58,881 | |
| Trade name | 0.5-10 | | 12,900 | | | 10,660 | | | 2,240 | |
| Covenants not to compete | 1-10 | | 5,839 | | | 5,064 | | | 775 | |
| | | $ | 94,575 | | | $ | 32,679 | | | $ | 61,896 | |
Future amortization expense for intangible assets is estimated at $5.0 million for 2026, $5.0 million for 2027, $4.9 million for 2028, $4.7 million for 2029, $4.3 million for 2030, and $33.0 million in total thereafter.
There were no changes in the carrying amount of goodwill during the twelve months ended December 31, 2025 and 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.