LIQUIDITY SERVICES INC Goodwill & Intangibles Disclosure
The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows:
Goodwill (in thousands) |
|
GovDeals |
|
|
CAG |
|
|
Machinio |
|
|
Total |
|
||||
Balance at September 30, 2021 |
|
$ |
23,731 |
|
|
$ |
21,583 |
|
|
$ |
14,558 |
|
|
$ |
59,872 |
|
Addition: Bid4Assets acquisition |
|
|
30,083 |
|
|
|
— |
|
|
|
— |
|
|
|
30,083 |
|
Translation adjustments |
|
|
— |
|
|
|
(1,045 |
) |
|
|
— |
|
|
|
(1,045 |
) |
Balance at September 30, 2022 |
|
$ |
53,814 |
|
|
$ |
20,538 |
|
|
$ |
14,558 |
|
|
$ |
88,910 |
|
Translation adjustments |
|
|
— |
|
|
|
478 |
|
|
|
— |
|
|
|
478 |
|
Balance at September 30, 2023 |
|
$ |
53,814 |
|
|
$ |
21,016 |
|
|
$ |
14,558 |
|
|
$ |
89,388 |
|
Addition: Sierra acquisition |
|
$ |
7,869 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,869 |
|
Translation adjustments |
|
|
— |
|
|
|
535 |
|
|
|
— |
|
|
|
535 |
|
Balance at September 30, 2024 |
|
$ |
61,683 |
|
|
$ |
21,551 |
|
|
$ |
14,558 |
|
|
$ |
97,792 |
|
The increase in the goodwill balance of approximately $7.9 million at the GovDeals reportable segment and reporting unit during the year ended September 30, 2024, is due to the Sierra acquisition; see Note 4 - Sierra Acquisition for further information.
The increase in the goodwill balance of approximately $30.1 million at the GovDeals reportable segment and reporting unit during the year ended September 30, 2022, is due to the Bid4Assets acquisition; see Note 3 - Bid4Assets Acquisition for further information.
Accumulated goodwill impairment losses as of September 30, 2024 and 2023 were $168.6 million.
Impairment Analysis
Goodwill is tested for impairment at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. As of July 1, 2024, the Company performed its annual impairment test qualitatively and concluded that it was more likely than not that the fair value of each reporting unit exceeded their carrying amounts. The Company did not record impairment charges on goodwill during the years ended September 30, 2024, 2023, and 2022.
The Company did not identify any indicators of impairment that required an interim goodwill impairment test during the three months ended September 30, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Dec 12, 2024 | Showing above |
| 2023 | Dec 7, 2023 | |
| 2022 | Dec 8, 2022 | |
| 2021 | Dec 9, 2021 | |
| 2019 | Dec 10, 2019 | |
| 2018 | Dec 6, 2018 | |
| 2017 | Dec 7, 2017 | |
| 2016 | Nov 21, 2016 | |
| 2015 | Nov 23, 2015 | |
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.