LINCOLN ELECTRIC HOLDINGS INC Goodwill & Intangibles Disclosure
NOTE 5 – GOODWILL AND INTANGIBLES
The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2025 and 2024 were as follows:
| | The Harris | | ||||||||
Americas | International | Products | |||||||||
Welding | | Welding | | Group | | Consolidated | |||||
Balance as of December 31, 2023 | $ | 497,600 |
| 153,479 |
| 43,373 |
| 694,452 | |||
Additions and adjustments (1) |
| 101,657 | 33,427 | — |
| 135,084 | |||||
Foreign currency translation |
| (13,443) | (10,644) | (522) |
| (24,609) | |||||
Balance as of December 31, 2024 |
| 585,814 |
| 176,262 |
| 42,851 |
| 804,927 | |||
Additions and adjustments (2) | (662) | 57,575 | — | 56,913 | |||||||
Foreign currency translation |
| 8,048 | 16,220 | 578 | 24,846 | ||||||
Balance as of December 31, 2025 | $ | 593,200 | $ | 250,057 | $ | 43,429 | $ | 886,686 | |||
| (1) | Additions to Americas Welding reflect goodwill recognized in the acquisitions of Vanair and RedViking. Additions to International Welding reflect goodwill recognized in the acquisition of Inrotech. |
| (2) | Decreases to Americas Welding reflects Vanair and RedViking purchase accounting adjustments. Additions to International Welding reflect goodwill recognized in the acquisition of Alloy Steel. |
Gross carrying values and accumulated amortization of intangible assets other than goodwill by asset class were as follows:
December 31, 2025 | December 31, 2024 | |||||||||||
Gross | | Accumulated | | Gross | | Accumulated | ||||||
| Amount | | Amortization | | Amount | | Amortization | |||||
Intangible assets not subject to amortization | |
| |
| |
| | |||||
Trademarks and trade names | $ | 16,311 |
| | $ | 16,208 |
| | ||||
Intangible assets subject to amortization |
| |
| |
| |
| | ||||
Trademarks and trade names | $ | 109,798 | $ | 57,807 | $ | 106,512 | $ | 55,078 | ||||
Customer relationships |
| 217,968 |
| 115,783 |
| 192,196 |
| 106,719 | ||||
Technology and know-how | 102,495 | 36,483 | 82,019 | 29,478 | ||||||||
Patents |
| 24,173 |
| 16,820 |
| 23,901 |
| 16,008 | ||||
Other |
| 44,260 |
| 37,688 |
| 42,315 |
| 34,863 | ||||
Total intangible assets subject to amortization | $ | 498,694 | $ | 264,581 | $ | 446,943 | $ | 242,146 | ||||
During 2025, the Company acquired intangible assets either individually or as part of a group of assets, with an initial purchase price allocation and weighted-average useful-life as follows:
Year Ended December 31, 2025 | ||||
Purchase Price | Weighted | |||
Allocation | | Average Life | ||
Acquired intangible assets subject to amortization |
| |
| |
Trademarks and trade names | $ | 7,407 |
| 15 |
Customer relationships |
| 25,491 |
| 14 |
Technology and know-how |
| 19,685 |
| 20 |
Other |
| 1,295 |
| 5 |
Total acquired intangible assets subject to amortization | $ | 53,878 |
| |
Aggregate amortization expense was $29,717, $27,075 and $25,983 for 2025, 2024 and 2023, respectively. At December 31, 2025, the Company’s estimated annual amortization expense for intangible assets for each of the next five years is $33,696 in 2026, $31,456 in 2027, $30,143 in 2028, $25,961 in 2029 and $22,034 in 2030.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 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.