Onterris, Inc. Goodwill & Intangibles Disclosure
9. GOODWILL AND INTANGIBLE ASSETS
Amounts related to goodwill are as follows:
|
|
Assessment, Permitting and Response |
|
|
Measurement and Analysis |
|
|
Remediation and Reuse |
|
|
Total |
|
||||
Balance as of December 31, 2024 |
|
$ |
205,231 |
|
|
$ |
118,860 |
|
|
$ |
143,698 |
|
|
$ |
467,789 |
|
Acquisitions measurement period adjustments, net of foreign currency translation |
|
|
1,501 |
|
|
|
220 |
|
|
|
(80 |
) |
|
|
1,641 |
|
Goodwill disposed during the period(1) |
|
|
— |
|
|
|
— |
|
|
|
(2,644 |
) |
|
|
(2,644 |
) |
Balance as of December 31, 2025 |
|
$ |
206,732 |
|
|
$ |
119,080 |
|
|
$ |
140,974 |
|
|
$ |
466,786 |
|
(1) Goodwill disposed during the period is due to the disposition of the Company's business in Denmark
Amounts related to finite-lived intangible assets are as follows:
December 31, 2025 |
|
Estimated Useful Life |
|
Gross Balance |
|
|
Accumulated Amortization |
|
|
Total Intangible Assets—Net |
|
|||
Customer relationships |
|
2-15 years |
|
$ |
264,564 |
|
|
$ |
160,459 |
|
|
$ |
104,105 |
|
Covenants not to compete |
|
4-5 years |
|
|
41,418 |
|
|
|
36,293 |
|
|
|
5,125 |
|
Trade names |
|
1-5 years |
|
|
25,917 |
|
|
|
25,441 |
|
|
|
476 |
|
Proprietary software |
|
3-5 years |
|
|
31,982 |
|
|
|
25,912 |
|
|
|
6,070 |
|
Patent |
|
16 years |
|
|
17,479 |
|
|
|
6,872 |
|
|
|
10,607 |
|
Total other intangible assets, net |
|
|
|
$ |
381,360 |
|
|
$ |
254,977 |
|
|
$ |
126,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
December 31, 2024 |
|
Estimated Useful Life |
|
Gross Balance |
|
|
Accumulated Amortization |
|
|
Total Intangible Assets—Net |
|
|||
Customer relationships |
|
2-15 years |
|
$ |
264,477 |
|
|
$ |
138,787 |
|
|
$ |
125,690 |
|
Covenants not to compete |
|
4-5 years |
|
|
41,758 |
|
|
|
33,898 |
|
|
|
7,860 |
|
Trade names |
|
1-5 years |
|
|
25,939 |
|
|
|
23,375 |
|
|
|
2,564 |
|
Proprietary software |
|
3-5 years |
|
|
28,428 |
|
|
|
23,489 |
|
|
|
4,939 |
|
Patent |
|
16 years |
|
|
17,479 |
|
|
|
5,776 |
|
|
|
11,703 |
|
Total other intangible assets, net |
|
|
|
$ |
378,081 |
|
|
$ |
225,325 |
|
|
$ |
152,756 |
|
Intangible assets with finite lives are stated at cost, less accumulated amortization and impairment losses, if any. These intangible assets are amortized using the straight-line method over the estimated useful lives of the assets.
Amortization expense for the years ended December 31, 2025, 2024, and 2023 was $29.9 million, $34.9 million and $30.1 million, respectively.
Future amortization expense is estimated to be as follows for each of the five following years and thereafter ending December 31:
December 31, |
|
|
|
|
2026 |
|
$ |
25,371 |
|
2027 |
|
|
24,258 |
|
2028 |
|
|
18,664 |
|
2029 |
|
|
12,773 |
|
2030 |
|
|
9,418 |
|
Thereafter |
|
|
35,899 |
|
Total |
|
$ |
126,383 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 24, 2021 | |
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.