Orion Group Holdings Inc Goodwill & Intangibles Disclosure
9.Intangible Assets
Intangible assets
The tables below present the activity and amortizations of finite-lived intangible assets:
| December 31, |
| December 31, | |||
2022 | 2021 | |||||
Finite-lived intangible assets, beginning of period | $ | 35,240 | $ | 35,240 | ||
Additions |
| — |
| — | ||
Total finite-lived intangible assets, end of period | $ | 35,240 | $ | 35,240 | ||
Accumulated amortization, beginning of period | $ | (33,576) | $ | (32,055) | ||
Current year amortization |
| (1,239) |
| (1,521) | ||
Total accumulated amortization |
| (34,815) |
| (33,576) | ||
Net finite-lived intangible assets, end of period | $ | 425 | 1,664 | |||
Infinite-lived intangible assets | 6,892 | 6,892 | ||||
Total net intangible assets | $ | 7,317 | $ | 8,556 | ||
Remaining net finite-lived intangible assets were acquired as part of the purchase of TAS during 2015 and TBC during 2017 and included customer relationships. Customer relationships were valued at approximately $18.8 million and are being amortized over eight years using an accelerated method based on the pattern in which the economic benefits of the assets are consumed. For the years ended December 31, 2022, 2021 and 2020, $1.2 million, $1.5 million and $2.1 million, respectively, of amortization expense was recognized for these assets. In 2022 and 2021, the Company evaluated the useful lives of these finite-lived intangible assets and no change was needed.
Future expense remaining of approximately $0.4 million will be amortized as follows:
2023 |
| 388 | |
2024 |
| 37 | |
$ | 425 |
The annual impairment test for both 2022 and 2021 concluded that the fair value of the Company’s infinite-lived trade name was in excess of the carrying value, therefore no impairment was recorded in each respective year.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Mar 16, 2023 | Showing above |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 2, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 27, 2019 | |
| 2017 | Mar 13, 2018 | |
| 2016 | Mar 24, 2017 | |
| 2015 | Mar 15, 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.