MARCHEX INC Goodwill & Intangibles Disclosure
Note 11: Identifiable Intangible Assets from Acquisitions
Intangible assets from acquisitions represent customer relationships, acquired technology, non-competition agreements, and trade names. These assets are determined to have definite lives and are amortized on a straight-line basis over the estimated period over which we expect to realize economic value related to the intangible asset. The amortization periods range from to five years. As of December 31, 2024, the net identifiable intangible assets have been fully amortized.
Identifiable intangible assets from acquisitions consisted of the following:
|
|
As of December 31, 2024 |
|
|||||||||||||
(In Thousands) |
|
Gross Carrying |
|
|
Accumulated |
|
|
Impairment |
|
|
Net Carrying |
|
||||
Customer relationships |
|
$ |
13,018 |
|
|
$ |
(9,588 |
) |
|
$ |
(3,430 |
) |
|
$ |
— |
|
Technologies |
|
|
9,369 |
|
|
|
(8,307 |
) |
|
|
(1,062 |
) |
|
|
— |
|
Non-compete agreements |
|
|
3,409 |
|
|
|
(3,063 |
) |
|
|
(346 |
) |
|
|
— |
|
Trade names |
|
|
734 |
|
|
|
(613 |
) |
|
|
(121 |
) |
|
|
— |
|
Total identifiable intangible assets from acquisitions |
|
$ |
26,530 |
|
|
$ |
(21,571 |
) |
|
$ |
(4,959 |
) |
|
$ |
— |
|
|
|
As of December 31, 2023 |
|
|||||||||||||
(In Thousands) |
|
Gross Carrying |
|
|
Accumulated |
|
|
Impairment |
|
|
Net Carrying |
|
||||
Customer relationships |
|
$ |
13,018 |
|
|
$ |
(9,588 |
) |
|
$ |
(3,430 |
) |
|
$ |
|
|
Technologies |
|
|
9,369 |
|
|
|
(7,839 |
) |
|
|
(1,062 |
) |
|
|
468 |
|
Non-compete agreements |
|
|
3,409 |
|
|
|
(2,929 |
) |
|
|
(346 |
) |
|
|
134 |
|
Trade names |
|
|
734 |
|
|
|
(613 |
) |
|
|
(121 |
) |
|
|
|
|
Total identifiable intangible assets from acquisitions |
|
$ |
26,530 |
|
|
$ |
(20,969 |
) |
|
$ |
(4,959 |
) |
|
$ |
602 |
|
The amortization of intangible assets is separately presented on the Consolidated Statements of Operations; if these amortization costs were not separately stated, they would be reported as follows:
|
|
Year Ended December 31, |
|
|||||
(In Thousands) |
|
2024 |
|
|
2023 |
|
||
Components of amortization of intangibles from acquisitions: |
|
|
|
|
|
|
||
Cost of revenue |
|
$ |
467 |
|
|
$ |
467 |
|
Sales and marketing |
|
|
135 |
|
|
|
1,520 |
|
Total |
|
$ |
602 |
|
|
$ |
1,987 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 14, 2025 | Showing above |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 8, 2017 | |
| 2015 | Mar 7, 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.