Innovex International, Inc. Goodwill & Intangibles Disclosure
NOTE 7. INTANGIBLE ASSETS AND GOODWILL
Intangible Assets
Intangible assets include customer relationships, non-compete agreements, trade names, technology, patents, and other intangibles associated with various business and asset acquisitions. These acquired intangible assets were recorded at fair value determined as of the date of acquisition and are being amortized over the period we expect to benefit from the assets.
A summary of intangible assets as of December 31, 2025 and 2024 is as follows (in thousands):
|
|
December 31, 2025 |
|
|||||||||
|
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|||
Customer relationships |
|
$ |
145,648 |
|
|
$ |
(46,488 |
) |
|
$ |
99,160 |
|
Trade names |
|
|
11,700 |
|
|
|
(1,822 |
) |
|
|
9,878 |
|
Technology, patents, and other |
|
|
8,100 |
|
|
|
(908 |
) |
|
|
7,192 |
|
Total |
|
$ |
165,448 |
|
|
$ |
(49,218 |
) |
|
$ |
116,230 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
December 31, 2024 |
|
|||||||||
|
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|||
Customer relationships |
|
$ |
145,966 |
|
|
$ |
(46,693 |
) |
|
$ |
99,273 |
|
Trade names |
|
|
18,280 |
|
|
|
(9,297 |
) |
|
|
8,983 |
|
Technology, patents, and other |
|
|
26,633 |
|
|
|
(26,526 |
) |
|
|
107 |
|
Total |
|
$ |
190,879 |
|
|
$ |
(82,516 |
) |
|
$ |
108,363 |
|
Amortization expense on intangible assets for the years ended December 31, 2025, 2024 and 2023 was $15.9 million, $8.5 million and $8.0 million, respectively.
See below for estimated future amortization expenses:
Year |
|
(in thousands) |
|
|
2026 |
|
$ |
15,522 |
|
2027 |
|
|
13,953 |
|
2028 |
|
|
13,953 |
|
2029 |
|
|
12,882 |
|
2030 |
|
|
11,137 |
|
Thereafter |
|
|
48,783 |
|
Total |
|
$ |
116,230 |
|
Goodwill
The following table presents changes in the carrying value of goodwill for the years ended December 31, 2025 and 2024:
(in thousands) |
|
Goodwill, Gross |
|
|
Accumulated |
|
|
Goodwill, Net |
|
|||
Balance at December 31, 2023 |
|
$ |
94,436 |
|
|
$ |
(70,504 |
) |
|
$ |
23,932 |
|
Additions – DWS acquisition |
|
|
36,244 |
|
|
|
— |
|
|
|
36,244 |
|
Balance at December 31, 2024 |
|
$ |
130,680 |
|
|
$ |
(70,504 |
) |
|
$ |
60,176 |
|
Additions – SCF acquisition |
|
|
15,402 |
|
|
|
— |
|
|
|
15,402 |
|
Additions – Citadel acquisition |
|
|
18,226 |
|
|
|
— |
|
|
|
18,226 |
|
Measurement period adjustments (1) |
|
|
6,022 |
|
|
|
— |
|
|
|
6,022 |
|
Foreign currency translation adjustment |
|
|
(106 |
) |
|
|
— |
|
|
|
(106 |
) |
Balance at December 31, 2025 |
|
$ |
170,224 |
|
|
$ |
(70,504 |
) |
|
$ |
99,720 |
|
(1) Measurement period adjustments are related to (a) legal defense costs pertaining to DWS contingencies, as discussed in Note 16. Commitments and Contingencies and (b) updated estimated fair value for acquired inventories as of the acquisition date for Citadel. Refer to Note 3. Mergers and Acquisitions for further discussion.
Impairment
We analyzed definite lived intangible assets for impairment as of December 31, 2025, 2024 and 2023 in accordance with Accounting Standards Codification Topic 360, Property, Plant, and Equipment ("ASC 360"), noting no impairment indicators were present. We analyzed goodwill for impairment as of December 31, 2025, 2024 and 2023, in accordance with Accounting Standards Codification Topic 350 Intangibles—Goodwill and Other ("ASC 350"), noting no impairment indicators were present. For our annual goodwill impairment test as of December 31, 2025, 2024 and 2023, we performed a qualitative assessment to determine if it was more likely than not (that is, a likelihood of more than 50 percent) that the fair value of our reporting unit was less than its carrying value as of the test date. We evaluated events and circumstances since the date of our last quantitative or qualitative assessment, including macroeconomic conditions, industry and market conditions, and our overall financial performance, and it was determined that the reporting unit fair value was, more likely than not, greater than the carrying amount. Therefore, no impairment charges were recorded related to goodwill for the years ended December 31, 2025, 2024 and 2023. We will continue to evaluate our goodwill and definite lived assets for potential triggering events as conditions warrant.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
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.