ENVIRI CorpNVRI

ENVIRI Corp Goodwill & Intangibles Disclosure

10-KFiled Feb 24, 20263 min read
Goodwill and Other Intangible Assets
Goodwill by Reportable Segment
The following table reflects the changes in carrying amounts of goodwill by each reporting unit for the years ended December 31, 2025 and 2024:
(In thousands)
Harsco Environmental
 Clean Earth
Harsco Rail
Consolidated Totals
Balance at December 31, 2023$388,653 $379,299 $13,026 $780,978 
Changes to goodwill (a)
(19,031)— — (19,031)
Goodwill impairment— — (13,026)(13,026)
Foreign currency translation(9,163)— — (9,163)
Balance at December 31, 2024360,459 379,299 — 739,758 
Foreign currency translation18,922 — — 18,922 
Balance at December 31, 2025$379,381 $379,299 $— $758,680 
(a) The changes to goodwill relate to the divestitures of the Performix and Reed businesses.
The Company's methodology for determining the fair value for its reporting units is described in Note 1, Summary of Significant Accounting Policies. The Company tests for goodwill impairment annually as of October 1, or more frequently if indicators of impairment exist or a decision is made to dispose of a business.

The performance of the Company's 2025 annual quantitative impairment test of Harsco Environmental and qualitative assessment of Clean Earth did not result in impairment of the Company's goodwill. The performance of the Company's 2024 annual quantitative impairment tests did not result in impairment of the Company's goodwill for Harsco Environmental or Clean Earth. See Note 1, Summary of Significant Accounting Policies, for the Company's methodology for determining reporting unit fair value. Due to lower projections, this testing resulted in the Company recorded a goodwill impairment charge of $13.0 million for the Rail reporting unit which is included in Goodwill and other intangible asset impairment charges on the Consolidated Statement of Operations for the year-ended December 31, 2024. This charge had no impact on the Company's cash flows or compliance with debt covenants.    

Intangible Assets
Net intangible assets totaled $273.1 million and $298.4 million at December 31, 2025 and 2024, respectively. The following table reflects these intangible assets by major category:
December 31, 2025December 31, 2024
(In thousands)Gross Carrying
Amount		Accumulated
Amortization		Gross Carrying
Amount		Accumulated
Amortization
Customer related$98,737 $78,791 $95,251 $69,795 
Permits310,273 98,975 310,236 82,799 
Technology related24,508 19,647 22,880 17,477 
Trade names31,808 17,903 31,514 15,142 
Air rights26,139 4,390 26,139 3,979 
Patents182 175 162 148 
Non-compete agreement— — 2,500 2,500 
Other3,104 1,782 3,457 1,861 
Total$494,751 $221,663 $492,139 $193,701 
In 2024, due to the loss of a customer in Europe for HE, the Company recorded a $2.8 million charge to fully impair the value of a related customer relationship intangible asset, which is included in Goodwill and other intangible asset impairment charges on the Consolidated Statement of Operations.
Amortization expense for intangible assets was $26.6 million, $27.3 million and $28.9 million for 2025, 2024 and 2023, respectively. Intangible assets are principally amortized using the straight-line method over the estimated useful life, except for the air rights, which are amortized based on usage. The following table shows the estimated amortization expense for the next five fiscal years based on current intangible assets.
(In thousands)20262027202820292030
Estimated amortization expense (a)
$26,800 $25,000 $23,600 $23,000 $20,800 
(a)    These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange rate fluctuations.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 20, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 21, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Feb 24, 2017
2015Feb 26, 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.

Other Available Disclosures

Income TaxesRevenuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance