HEXCEL CORP /DE/ Goodwill & Intangibles Disclosure
Note 5 — Goodwill and Purchased Intangible Assets
Changes in the carrying amount of gross goodwill and other purchased intangibles for the years ended December 31, 2025 and 2024, by segment, are as follows:
(In millions) |
|
Composite |
|
|
Engineered |
|
|
Total |
|
|||
Balance as of December 31, 2023 |
|
$ |
87.2 |
|
|
$ |
164.1 |
|
|
$ |
251.3 |
|
Amortization expense |
|
|
(1.8 |
) |
|
|
(5.0 |
) |
|
|
(6.8 |
) |
Intangible Asset Impairment |
|
|
— |
|
|
|
(5.2 |
) |
|
|
(5.2 |
) |
Currency translation adjustments and other |
|
|
(2.3 |
) |
|
|
— |
|
|
|
(2.3 |
) |
Balance as of December 31, 2024 |
|
$ |
83.1 |
|
|
$ |
153.9 |
|
|
$ |
237.0 |
|
Amortization expense |
|
|
(1.6 |
) |
|
|
(4.0 |
) |
|
|
(5.6 |
) |
Intangible Asset Impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Currency translation adjustments and other |
|
|
8.4 |
|
|
|
— |
|
|
|
8.4 |
|
Balance as of December 31, 2025 |
|
$ |
89.9 |
|
|
$ |
149.9 |
|
|
$ |
239.8 |
|
We performed our annual impairment review of goodwill as of November 30, 2025 and determined that it was more likely than not that the fair values of our reporting units are above their carrying values and that no impairment exists. The goodwill and intangible asset balances as of December 31, 2025 included $6.6 million of indefinite-lived intangible assets, $41.6 million of a definite-lived intangible asset (net of accumulated amortization of $48.2 million) and $191.6 million of goodwill. Of the $191.6 million of goodwill, $76.2 million is allocated to the Composite Materials segment and $115.4 million to the Engineered Products segment.
The weighted average remaining life of the finite lived intangible assets is 8 years. Amortization related to the definite lived intangible assets for the next five years and thereafter is as follows:
(In millions) |
|
|
|
|
2026 |
|
$ |
5.7 |
|
2027 |
|
|
5.5 |
|
2028 |
|
|
5.0 |
|
2029 |
|
|
5.0 |
|
2030 |
|
|
5.0 |
|
Thereafter |
|
|
15.4 |
|
Total |
|
$ |
41.6 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2023 | Feb 7, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 6, 2019 | |
| 2017 | Feb 7, 2018 | |
| 2016 | Feb 9, 2017 | |
| 2015 | Feb 4, 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.