LITTELFUSE INC /DELFUS
LITTELFUSE INC /DE Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
The amounts for goodwill and changes in the carrying value by segment were as follows:
| (in thousands) | Electronics | Transportation | Industrial | Total | |||||||||||||||||||
Gross goodwill as of December 30, 2023 | $ | 936,505 | $ | 237,115 | $ | 179,117 | $ | 1,352,737 | |||||||||||||||
Accumulated impairment losses as of December 30, 2023 | — | (34,004) | (8,735) | (42,739) | |||||||||||||||||||
Net goodwill as of December 30, 2023 | $ | 936,505 | $ | 203,111 | $ | 170,382 | $ | 1,309,998 | |||||||||||||||
Changes during 2024: | |||||||||||||||||||||||
| — | (8,616) | (36,147) | (44,763) | ||||||||||||||||||||
| Foreign currency translation adjustments | (29,634) | (2,854) | (4,245) | (36,733) | |||||||||||||||||||
Gross goodwill as of December 28, 2024 | 906,871 | 233,286 | 173,882 | 1,314,039 | |||||||||||||||||||
Accumulated impairment losses as of December 28, 2024 | — | (41,645) | (43,892) | (85,537) | |||||||||||||||||||
Net goodwill as of December 28, 2024 | $ | 906,871 | $ | 191,641 | $ | 129,990 | $ | 1,228,502 | |||||||||||||||
Changes during 2025: | |||||||||||||||||||||||
| Additions (a) | 57,321 | — | 152,343 | 209,664 | |||||||||||||||||||
| (301,185) | — | — | (301,185) | ||||||||||||||||||||
| Foreign currency translation adjustments | 61,322 | 5,758 | 7,350 | 74,430 | |||||||||||||||||||
Gross goodwill as of December 27, 2025 | 1,027,462 | 242,192 | 338,739 | 1,608,393 | |||||||||||||||||||
Accumulated impairment losses as of December 27, 2025 | (303,133) | (44,793) | (49,056) | (396,982) | |||||||||||||||||||
Net goodwill as of December 27, 2025 | $ | 724,329 | $ | 197,399 | $ | 289,683 | $ | 1,211,411 | |||||||||||||||
(a) The additions resulted from the acquisitions of Dortmund Fab and Basler.
The Company tests its goodwill annually for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The results of the goodwill impairment test as of September 28, 2025 indicated that the estimated fair value for the Electronics-Semiconductor reporting unit was below its respective carrying value. Accordingly, the Company recorded a non-cash charge of $301.2 million to reflect the impairment of goodwill for the Electronics-Semiconductor reporting unit within the Electronics segment during the fourth quarter of 2025.
The goodwill impairment charge for the Electronics-Semiconductor reporting unit in the fourth quarter of 2025 was due to reductions in the estimated fair value from lower expectations for future revenue, profitability and cash flows for the Electronics-Semiconductor reporting unit as compared to the expectations of the 2024 annual goodwill impairment test. In the context of a recent leadership transition and strategic reassessment in the semiconductor business, the reduction was primarily driven by lower projected volumes in the power semiconductor business, largely associated with the Dortmund Fab.
During the fourth quarter of 2024, the Company recorded non-cash charges of $36.1 million and $8.6 million, respectively, to reflect the impairment of goodwill for the Industrial controls and sensors reporting unit within the Industrial segment and the Automotive sensors reporting unit within the Transportation segment. There were no impairment charges recorded during the fiscal year of 2023. The goodwill impairment charge for the Industrial controls and sensors reporting unit was due to a reduction in the estimated fair value of the reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2023 annual goodwill impairment test driven by lower-than-expected demand in the electric vehicle end market as well as reduced government funding to support charging infrastructures for electric vehicles, primarily in Europe.
The goodwill impairment charge was determined using Level 3 inputs, including discounted cash flow analysis and comparable marketplace fair value data. As of December 27, 2025, the Electronics-Semiconductor and the Industrial Controls and Sensors reporting units had $238.5 million and $274.9 million of remaining goodwill, respectively.
The components of intangible assets at December 27, 2025 and December 28, 2024 were as follows:
| As of December 27, 2025 | |||||||||||||||||
| (in thousands) | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||
| Land use rights | $ | 16,661 | $ | 3,613 | $ | 13,048 | |||||||||||
| Patents, licenses, and software | 291,192 | 212,184 | 79,008 | ||||||||||||||
| Distribution network | 42,384 | 42,384 | — | ||||||||||||||
| Customer relationships, trademarks, and tradenames | 793,670 | 290,819 | 502,851 | ||||||||||||||
| Total | $ | 1,143,907 | $ | 549,000 | $ | 594,907 | |||||||||||
| As of December 28, 2024 | |||||||||||||||||
| (in thousands) | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||
| Land use rights | $ | 16,079 | $ | 2,994 | $ | 13,085 | |||||||||||
| Patents, licenses, and software | 260,096 | 180,674 | 79,422 | ||||||||||||||
| Distribution network | 41,667 | 41,667 | — | ||||||||||||||
| Customer relationships, trademarks, and tradenames | 632,572 | 242,961 | 389,611 | ||||||||||||||
| Total | $ | 950,414 | $ | 468,296 | $ | 482,118 | |||||||||||
During the fiscal year ended December 27, 2025, the Company recorded additions to other intangible assets of $150.0 million and $1.8 million related to the Basler and Dortmund Fab acquisitions, respectively, the components of which were as follows:
| 2025 | |||||||||||
| (in thousands, except weighted average useful life) | Weighted Average Useful Life (Years) | Amount | |||||||||
| Basler | |||||||||||
| Patents, developed technology | 6.0 | $ | 15,000 | ||||||||
| Customer relationships, trademarks, and tradenames | 13.6 | 135,000 | |||||||||
| $ | 150,000 | ||||||||||
| Dortmund Fab | |||||||||||
| Customer relationships, trademarks, and tradenames | 5.0 | $ | 1,800 | ||||||||
For intangible assets with definite lives, the Company recorded amortization expense of $59.8 million, $62.1 million, and $65.8 million in 2025, 2024, and 2023, respectively.
During the fourth quarter of 2024, the Company recorded non-cash impairment charges of $47.8 million for the impairment of intangible assets, including $47.6 million related to the impairment of certain acquired customer relationships, developed technology, and tradename intangible assets in the Industrial Controls and Sensors reporting unit within the Industrial segment. This impairment resulted from lower expectations of future revenue and cash flows and was determined using Level 3 inputs and estimated based on cash flow analyses, which included management’s assumptions related to future revenues and profitability. The remaining impairment charges included $0.2 million for patents and customer relationships related to the exit of a small business in China within Industrial segment. In addition, during the first quarter of 2024, the Company recognized a $0.9 million impairment related to certain machinery and equipment in the commercial vehicle business within the Transportation segment.
Estimated annual amortization expense related to intangible assets with definite lives at December 27, 2025 is as follows:
(in thousands) | Amount | ||||
| 2026 | $ | 61,306 | |||
| 2027 | 59,123 | ||||
| 2028 | 58,720 | ||||
| 2029 | 58,309 | ||||
| 2030 | 54,908 | ||||
| 2031 and thereafter | 302,541 | ||||
| Total | $ | 594,907 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 27, 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.