LivaNova PLCLIVN

LivaNova PLC Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20262 min read
Note 5. Goodwill and Intangible Assets
The following table presents LivaNova’s finite-lived and indefinite-lived intangible assets (in thousands):
Amortization Period in YearsDecember 31,
20252024
Finite-lived intangible assets:
Customer relationships
7 - 18
$190,850 $178,616 
Developed technology
14 - 17
108,907 97,858 
Trade names14,076 12,453 
Other intangible assets1,038 721 
Total gross finite-lived intangible assets314,871 289,648 
Accumulated amortization - Customer relationships(107,785)(90,895)
Accumulated amortization - Developed technology(74,263)(60,315)
Accumulated amortization - Trade names(14,076)(12,453)
Accumulated amortization - Other intangible assets(783)(691)
Total accumulated amortization(196,907)(164,354)
Net finite-lived intangible assets$117,964 $125,294 
Indefinite-lived intangible assets:
IPR&D$112,000 $112,000 
Goodwill792,840 750,006 
Total indefinite-lived intangible assets$904,840 $862,006 
The following table presents estimated future amortization expense based on LivaNova’s finite-lived intangible assets as of December 31, 2025 (in thousands):
2026$18,162 
202717,763 
202817,763 
202917,652 
203016,432 
In connection with the 2024 Restructuring Plan, as previously discussed in “Note 4. Restructuring,” LivaNova recorded impairments of the ACS developed technology and trade names intangible assets of $78.1 million and $7.1 million, respectively, for the year ended December 31, 2023, which are included within impairment of long-lived assets on the consolidated statements of income (loss).
Goodwill
The following table presents the changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 (in thousands):
CardiopulmonaryNeuromodulationTotal
As of December 31, 2023
$384,187 $398,754 $782,941 
Foreign currency translation adjustment
(32,935)— (32,935)
As of December 31, 2024
351,252 398,754 750,006 
Foreign currency translation adjustment
42,834 — 42,834 
As of December 31, 2025
$394,086 $398,754 $792,840 
LivaNova performed a quantitative goodwill impairment assessment for its Cardiopulmonary and Neuromodulation reporting units as of October 1, 2025. The assessment was performed using management’s current estimate of future cash flows and discount rates to present value. LivaNova concluded that the fair value of its Cardiopulmonary and Neuromodulation reporting units exceeded the carrying value of the respective reporting units and were, therefore, not impaired on the October 1, 2025 test date.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025
2023Feb 29, 2024
2022Feb 27, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 2, 2020
2018Mar 18, 2019
2017Feb 28, 2018
2016Mar 1, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance