NPK International Inc.NPKI

NPK International Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 27, 20262 min read
Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill are as follows:
(In thousands)
Balance at December 31, 2023$47,283 
Effects of foreign currency(61)
Balance at December 31, 202447,222 
Acquisition28,179 
Effects of foreign currency940 
Balance at December 31, 2025$76,341 
We completed the annual evaluation of the carrying value of our goodwill as of November 1, 2025 and determined that the fair value exceeded the net carrying value, and therefore, no impairment was required.
In November 2025, we completed the acquisition of Grassform, which resulted in additions to goodwill of $28.2 million and amortizable intangible assets of $12.8 million. See Note 2 for additional information.
Other intangible assets consisted of the following:
 December 31, 2025December 31, 2024
(In thousands)Gross
Carrying
Amount		Accumulated
Amortization		Other
Intangible
Assets, Net		Gross
Carrying
Amount		Accumulated
Amortization		Other
Intangible
Assets, Net
Technology related$11,600 $(6,561)$5,039 $11,600 $(5,757)$5,843 
Customer related31,300 (15,042)16,258 18,250 (13,762)4,488 
Total intangible assets$42,900 $(21,603)$21,297 $29,850 $(19,519)$10,331 
Total amortization expense related to other intangible assets was $2.1 million, $2.1 million and $2.4 million in 2025, 2024 and 2023, respectively.
Estimated future amortization expense for the years ended December 31 is as follows:
(In thousands)20262027202820292030ThereafterTotal
Technology related$803 $788 $713 $713 $713 $1,309 $5,039 
Customer related3,767 3,102 2,359 1,842 1,446 3,742 16,258 
Total future amortization expense$4,570 $3,890 $3,072 $2,555 $2,159 $5,051 $21,297 
The weighted average amortization period for technology related and customer related intangible assets is 15 years and 13 years, respectively.

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.

Other Available Disclosures

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