MasterCraft Boat Holdings, Inc. Goodwill & Intangibles Disclosure
7. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill and Other Intangible Asset Impairment
See Note 1 for a discussion of the methods used to determine the fair value of goodwill and other intangible assets. In assessing the need for goodwill and intangible impairment, management utilizes a number of estimates, including operating results, business plans, economic projections, anticipated future cash flows, transactions and marketplace data. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy.
Goodwill
As of June 30, 2025, our annual impairment test date, the Company performed a qualitative assessment and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of goodwill within our MasterCraft segment.
The following table presents the carrying amounts of goodwill as of June 30, 2025 and 2024 for each of the Company’s reportable segments.
|
|
Gross Amount |
|
|
Accumulated Impairment Losses |
|
|
Total |
|
|||
MasterCraft |
|
$ |
28,493 |
|
|
$ |
— |
|
|
$ |
28,493 |
|
Pontoon |
|
|
36,238 |
|
|
|
(36,238 |
) |
|
|
— |
|
Total |
|
$ |
64,731 |
|
|
$ |
(36,238 |
) |
|
$ |
28,493 |
|
Other Intangible Assets
The following table presents the carrying amount of Other intangible assets, net as of June 30, 2025 and 2024.
|
|
June 30, |
|
|
June 30, |
|
||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
|
Gross Amount |
|
|
Accumulated Amortization / Impairment |
|
|
Other intangible assets, net |
|
|
Gross Amount |
|
|
Accumulated Amortization / Impairment |
|
|
Other intangible assets, net |
|
||||||
Amortized intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dealer networks |
|
$ |
19,500 |
|
|
$ |
(13,650 |
) |
|
$ |
5,850 |
|
|
$ |
19,500 |
|
|
$ |
(11,850 |
) |
|
$ |
7,650 |
|
Software |
|
|
245 |
|
|
|
(245 |
) |
|
|
— |
|
|
|
245 |
|
|
|
(245 |
) |
|
|
— |
|
|
|
|
19,745 |
|
|
|
(13,895 |
) |
|
|
5,850 |
|
|
|
19,745 |
|
|
|
(12,095 |
) |
|
|
7,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trade names |
|
|
33,000 |
|
|
|
(7,000 |
) |
|
|
26,000 |
|
|
|
33,000 |
|
|
|
(7,000 |
) |
|
|
26,000 |
|
Total other intangible assets |
|
$ |
52,745 |
|
|
$ |
(20,895 |
) |
|
$ |
31,850 |
|
|
$ |
52,745 |
|
|
$ |
(19,095 |
) |
|
$ |
33,650 |
|
As of June 30, 2025, our annual impairment test date, the Company performed a qualitative assessment on our indefinite-lived intangible assets and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of
trade names within our MasterCraft and Pontoon segments. The carrying value of the indefinite-lived intangible assets associated with the MasterCraft and Pontoon segments was $16.0 million and $10.0 million, respectively, as of June 30, 2025 and 2024.
Additionally, the Company performed an interim impairment evaluation on our Crest brand indefinite and definite-lived intangible assets during the fiscal 2025 fourth quarter, as discussed in Note 1, and concluded both the fair value and undiscounted cash flows exceeded the related carrying values, respectively, resulting in no impairment.
Amortization expense related to Other intangible assets, net for each of the years ended June 30, 2025 and 2024, was $1.8 million, and for the year ended June 30, 2023, was $2.0 million.
The following table presents estimated future amortization expense for the next four fiscal years.
Fiscal years ending June 30, |
|
|
|
|
2026 |
|
|
1,800 |
|
2027 |
|
|
1,800 |
|
2028 |
|
|
1,800 |
|
2029 |
|
|
450 |
|
Total |
|
$ |
5,850 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 27, 2025 | Showing above |
| 2024 | Aug 30, 2024 | |
| 2023 | Aug 30, 2023 | |
| 2022 | Sep 9, 2022 | |
| 2021 | Sep 2, 2021 | |
| 2020 | Sep 11, 2020 | |
| 2019 | Sep 13, 2019 | |
| 2018 | Sep 7, 2018 | |
| 2017 | Sep 8, 2017 | |
| 2016 | Sep 9, 2016 | |
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.