MERIT MEDICAL SYSTEMS INC Goodwill & Intangibles Disclosure
5.GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024, are as follows (in thousands):
2025 | 2024 | |||||||||||||||||
| Cardiovascular | Endoscopy | Total | | Cardiovascular | Endoscopy | Total | |||||||||||
Goodwill balance at January 1 | $ | 446,514 | $ | 16,997 | $ | 463,511 | $ | 382,240 | $ | — | $ | 382,240 | ||||||
Effect of foreign exchange |
| 2,813 |
| — |
| 2,813 |
| (1,623) |
| — |
| (1,623) | ||||||
Additions and adjustments as the result of acquisitions |
| 37,607 |
| 2,906 |
| 40,513 |
| 65,897 |
| 16,997 |
| 82,894 | ||||||
Goodwill balance at December 31 | $ | 486,934 | $ | 19,903 | $ | 506,837 | $ | 446,514 | $ | 16,997 | $ | 463,511 | ||||||
We did not have any goodwill impairments for the years ended December 31, 2025, 2024 and 2023. Total accumulated goodwill impairment losses aggregated to $8.3 million as of December 31, 2025 and 2024.
Other intangible assets at December 31, 2025 and 2024, consisted of the following (in thousands):
December 31, 2025 | |||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||
| Amount | | Amortization | | Amount | ||||
Patents | $ | 33,979 | $ | (14,760) | $ | 19,219 | |||
Distribution agreements |
| 3,250 |
| (3,069) |
| 181 | |||
License agreements |
| 14,590 |
| (10,218) |
| 4,372 | |||
Trademarks |
| 52,556 |
| (28,293) |
| 24,263 | |||
Customer lists |
| 63,775 |
| (40,096) |
| 23,679 | |||
Total | $ | 168,150 | $ | (96,436) | $ | 71,714 | |||
December 31, 2024 | |||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||
| Amount | | Amortization | | Amount | ||||
Patents | $ | 31,489 | $ | (12,824) | $ | 18,665 | |||
Distribution agreements |
| 3,250 |
| (2,994) |
| 256 | |||
License agreements |
| 11,557 |
| (9,125) |
| 2,432 | |||
Trademarks |
| 47,613 |
| (24,177) |
| 23,436 | |||
Customer lists |
| 57,933 |
| (36,223) |
| 21,710 | |||
Total | $ | 151,842 | $ | (85,343) | $ | 66,499 | |||
Aggregate amortization expense for the years ended December 31, 2025, 2024 and 2023 was $85.1 million, $65.6 million, and $56.1 million, respectively.
Estimated amortization expense for the developed technology and other intangible assets for the next five years consists of the following as of December 31, 2025 (in thousands):
Year ending December 31, | | Estimated Amortization Expense | |
2026 | $ | 83,865 | |
2027 |
| 80,268 | |
2028 |
| 78,601 | |
2029 | 67,281 | ||
2030 |
| 54,968 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 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.