GOODWILL AND INTANGIBLE ASSETS
Goodwill
Total assets reflected on the balance sheet and not remeasured to fair value on a recurring basis, identified as Level 3 measurements, as of December 31, 2025 are $694.0 million, comprised of $662.4 million of goodwill and $31.6 million of identified indefinite-lived intangible assets. Accumulated goodwill impairment losses to date amounts to $9.3 million, all of which was recognized in the year ended December 31, 2015.
Intangible Assets, Net
Intangible assets, net consisted of the following at December 31 (in thousands):
| | | | | | | | | | | |
| 2025 | | 2024 |
| Intangible assets: | | | |
| Finite-lived intangible assets: | | | |
| Carrying amount: | | | |
| Customer relationships | $ | 145,051 | | | $ | 145,051 | |
| Accumulated amortization: | | | |
| Customer relationships | (143,277) | | | (142,331) | |
| Total finite-lived intangible assets, net | 1,774 | | | 2,720 | |
| Trade name (indefinite-lived) | 31,646 | | | 31,646 | |
| Total intangible assets, net | $ | 33,420 | | | $ | 34,366 | |
As of December 31, 2025, estimated amortization expense of the Company’s intangible assets for each of the remaining years is as follows (in thousands):
| | | | | |
| Amortization |
| 2026 | $ | 620 | |
| 2027 | 577 | |
| 2028 | 577 | |
| $ | 1,774 | |
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.