Liberty Live Holdings, Inc. Goodwill & Intangibles Disclosure
(7) Goodwill and Other Intangible Assets
Goodwill
Changes in the carrying amount of goodwill related to Quint are as follows (amounts in thousands):
| ||||
Balance at January 1, 2024 | $ | — | ||
Acquisition (1) | 194,270 | |||
Impairments (2) | (67,066) | |||
Foreign currency translation adjustments | (1,709) | |||
Balance at December 31, 2024 | 125,495 | |||
Foreign currency translation adjustments | 1,872 | |||
Balance at December 31, 2025 | $ | 127,367 |
| (1) | See note 4 to the accompanying consolidated financial statements for additional information about the acquisition of Quint. |
| (2) | See discussion of the impairment of Quint below. |
Intangible Assets Subject to Amortization
Intangible assets subject to amortization are comprised of the following:
December 31, 2025 | December 31, 2024 |
| ||||||||||||
| Gross | | | | Net | | Gross | | | | Net |
| ||
carrying | Accumulated | carrying | carrying | Accumulated | carrying |
| ||||||||
amount | amortization | amount | amount | amortization | amount |
| ||||||||
amounts in thousands |
| |||||||||||||
Rightsholder relationships | $ | 170,081 | (51,787) | 118,294 | 170,863 | (29,208) | 141,655 | |||||||
Capitalized software |
| 2,645 | (2,334) | 311 | 2,382 | (2,255) | 127 | |||||||
Total | $ | 172,726 | (54,121) | 118,605 | 173,245 | (31,463) | 141,782 | |||||||
Rightsholder relationships are amortized over 3 to 13 years. Capitalized software is amortized over 3 years. Amortization expense was $25,651 thousand and $26,883 thousand for the years ended December 31, 2025 and 2024, respectively.
Based on its amortizable intangible assets as of December 31, 2025, Liberty Live expects that amortization will be as follows for the next five years (amounts in thousands):
2026 | | $ | 26,860 | |
2027 | $ | 19,567 | ||
2028 | $ | 18,515 | ||
2029 | $ | 16,033 | ||
2030 | $ | 14,453 |
Impairments
The Company performed a quantitative analysis of the reporting units that comprise the Quint reportable segment during the fourth quarter of 2024. Based on near-term business trends and their impact on long-term assumptions, we concluded that the estimated fair values of certain of Quint’s reporting units were less than their respective carrying values. As a result, the Company recognized a goodwill impairment loss of $67,066 thousand during the year ended December 31, 2024. The fair value was determined using a discounted cash flow (income approach) calculation (Level 3).
Based on the impairment losses recorded, the estimated fair values of certain reporting units that comprise the Quint reportable segment do not significantly exceed their carrying values as of December 31, 2025. As of December 31, 2025 the Company had accumulated goodwill impairment losses of $67,066 thousand attributed to Quint.
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.