Limoneira COLMNR

Limoneira CO Goodwill & Intangibles Disclosure

10-KFiled Dec 23, 20252 min read
Goodwill and Intangible Assets
A summary of the change in the carrying amount of goodwill is as follows (in thousands):
Goodwill Carrying Amount
Balance at October 31, 2023$1,512 
Foreign currency translation adjustment(8)
Balance at October 31, 2024$1,504 
Foreign currency translation adjustment2 
Balance at October 31, 2025$1,506 
Goodwill is tested for impairment on an annual basis or when an event or changes in circumstances indicate that its carrying value may not be recoverable. The Company concluded that no potential impairment indicators existed during any interim period and performed its annual assessment of goodwill impairment as of July 31, 2025 with no impairment noted. The Company did not incur any goodwill impairment losses for fiscal years 2025, 2024 or 2023, as the estimated fair values of its reporting units were in excess of their carrying values.
As of October 31, 2025, the Company allocated goodwill to its reportable segments as follows: Fresh Lemons $936,000 and Lemon Packing $570,000, respectively.
8. Goodwill and Intangible Assets (continued)
Intangible assets consist of the following as of October 31 (in thousands):
October 31, 2025October 31, 2024
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Useful Life in YearsGross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Useful Life in Years
Trade names and trademarks$2,108 (1,513)595 8$2,108 $(1,308)$800 8
Customer relationships2,707 (2,160)547 82,707 (1,842)865 8
Non-competition agreement 437 (242)195 8437 (187)250 8
Acquired water and mineral rights1,284 — 1,284 Indefinite3,306 — 3,306  Indefinite
$6,536 $(3,915)$2,621 $8,558 $(3,337)$5,221 
Amortization expense totaled $578,000, $677,000, and $730,000 for fiscal years 2025, 2024 and 2023, respectively.
In January 2025, the Company sold acquired water rights in the Santa Paula Basin for $30,000 per acre-foot in two transactions. The total selling price was $1,440,000 and the Company recorded a gain on sales of water rights of $1,200,000.
As discussed in Note 3 - Asset Sales and Disposals, the Company’s Chilean water rights were reclassified as assets held for sale as of October 31, 2025 and were sold November 7, 2025.
Estimated future amortization expense of intangible assets are as follows (in thousands):
2026$578 
2027294 
2028294 
2029171 
 $1,337 

Historical Timeline

Fiscal YearFiled
2025Dec 23, 2025Showing above
2021Jan 10, 2022

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&ELeasesSegmentsCommitmentsNew Standards