NRC HEALTH Goodwill & Intangibles Disclosure
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(5) |
Goodwill and Intangible Assets |
The carrying amount of goodwill totaled $66.2 million at December 31, 2025, and 2024. There were no changes in goodwill during the year ending December 2025.
The following are changes to the carrying amount of goodwill during the year ending December 31, 2024 (in thousands):
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Gross |
Accumulated Impairment |
Net |
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Balance at December 31, 2023 |
$ | 62,328 | $ | (714 | ) | $ | 61,614 | |||||
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Goodwill acquired |
4,538 | - | 4,538 | |||||||||
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Balance at December 31, 2024 |
$ | 66,866 | $ | (714 | ) | $ | 66,152 | |||||
Intangible assets consisted of the following at December 31, 2025:
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Useful Life |
Gross |
Accumulated Amortization |
Net |
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(In years) |
(In thousands) |
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Non-amortizing intangible assets: |
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Indefinite trade name |
$ | 1,191 | $ | 1,191 | |||||||||||||
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Amortizing intangible assets: |
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Customer related |
5 | - | 15 | 9,772 | 9,317 | 455 | |||||||||||
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Technology |
3 | - | 7 | 2,790 | 2,209 | 581 | |||||||||||
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Trade names |
10 | 1,572 | 1,572 | — | |||||||||||||
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Total amortizing intangible assets |
14,134 | 13,098 | 1,036 | ||||||||||||||
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Total intangible assets other than goodwill |
$ | 15,325 | $ | 13,098 | $ | 2,227 | |||||||||||
Intangible assets consisted of the following at December 31, 2024:
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Useful Life |
Gross |
Accumulated Amortization |
Net |
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|
(In years) |
(In thousands) |
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Non-amortizing intangible assets: |
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Indefinite trade name |
$ | 1,191 | $ | 1,191 | |||||||||||||
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Amortizing intangible assets: |
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Customer related |
5 | - | 15 | 9,772 | 9,214 | 558 | |||||||||||
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Technology |
3 | - | 7 | 2,790 | 1,923 | 867 | |||||||||||
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Trade names |
10 | 1,572 | 1,572 | — | |||||||||||||
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Total amortizing intangible assets |
14,134 | 12,709 | 1,425 | ||||||||||||||
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Total intangible assets other than goodwill |
$ | 15,325 | $ | 12,709 | $ | 2,616 | |||||||||||
Aggregate amortization expense for customer related intangibles, trade names, and technology for the years ended December 31, 2025, 2024, and 2023 was $389,000, $264,000, and $140,000, respectively. Estimated future amortization expense is $249,000, $249,000, $249,000, $166,000, and $83,000 for 2026, 2027, 2028, 2029, and 2030, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 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.