KAISER ALUMINUM CORP Goodwill & Intangibles Disclosure
4. Goodwill and Intangible Assets
Goodwill. We identified no indicators of goodwill impairment during the years ended December 31, 2025, 2024, and 2023.
The following table presents the changes in the carrying value of our goodwill (in millions of dollars):
|
|
As of December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Gross carrying value1 |
|
$ |
57.7 |
|
|
$ |
57.7 |
|
Accumulated impairment loss1 |
|
|
(38.9 |
) |
|
|
(38.9 |
) |
Net carrying value |
|
$ |
18.8 |
|
|
$ |
18.8 |
|
Intangible Assets. The following table presents the gross carrying amount and accumulated amortization of our intangible assets by major intangible asset class (in millions of dollars):
|
|
Gross |
|
|
Accumulated |
|
|
Intangible |
|
|||
As of December 31, 2025 |
|
|
|
|
|
|
|
|
|
|||
Customer relationships |
|
$ |
68.1 |
|
|
$ |
(34.5 |
) |
|
$ |
33.6 |
|
Trade name |
|
|
2.4 |
|
|
|
(1.7 |
) |
|
|
0.7 |
|
Favorable lease contracts |
|
|
7.0 |
|
|
|
(0.3 |
) |
|
|
6.7 |
|
Total |
|
$ |
77.5 |
|
|
$ |
(36.5 |
) |
|
$ |
41.0 |
|
As of December 31, 2024 |
|
|
|
|
|
|
|
|
|
|||
Customer relationships |
|
$ |
68.1 |
|
|
$ |
(30.3 |
) |
|
$ |
37.8 |
|
Trade name |
|
|
2.4 |
|
|
|
(1.5 |
) |
|
|
0.9 |
|
Non-compete agreement |
|
|
5.4 |
|
|
|
(5.4 |
) |
|
|
— |
|
Favorable lease contracts |
|
|
7.0 |
|
|
|
(0.2 |
) |
|
|
6.8 |
|
Total |
|
$ |
82.9 |
|
|
$ |
(37.4 |
) |
|
$ |
45.5 |
|
We identified no indicators of impairment associated with our intangible assets during the years ended December 31, 2025, 2024, and 2023.
Amortization expense relating to definite-lived intangible assets was $4.5 million, $4.5 million and $5.3 million for 2025, 2024, and 2023, respectively. The following table presents the expected amortization of intangible assets for each of the next five calendar years and thereafter as of December 31, 2025 (in millions of dollars):
2026 |
|
$ |
4.5 |
|
2027 |
|
|
4.5 |
|
2028 |
|
|
4.4 |
|
2029 |
|
|
4.1 |
|
2030 |
|
|
4.1 |
|
Thereafter |
|
|
19.4 |
|
Total |
|
$ |
41.0 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 22, 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.