ONESPAWORLD HOLDINGS Ltd Goodwill & Intangibles Disclosure
4. Intangible Assets
Intangible assets consist of finite and indefinite life assets. The following is a summary of the Company’s intangible assets as of December 31, 2025 (in thousands, except amortization period):
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Cost |
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Accumulated Amortization and Impairment |
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Net Balance |
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Original Weighted Average Amortization Period (in years) |
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Retail concession agreements |
$ |
604,700 |
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$ |
(105,195 |
) |
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$ |
499,505 |
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39 |
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Destination resort agreements |
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17,900 |
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(11,798 |
) |
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6,102 |
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15 |
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Trade name |
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6,200 |
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(800 |
) |
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5,400 |
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Indefinite-life |
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Licensing agreement |
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1,000 |
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(1,000 |
) |
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- |
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8 |
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$ |
629,800 |
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$ |
(118,793 |
) |
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$ |
511,007 |
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The following is a summary of the Company’s intangible assets as of December 31, 2024 (in thousands, except amortization period):
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Cost |
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Accumulated Amortization |
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Net Balance |
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Original Weighted Average Amortization Period (in years) |
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Retail concession agreements |
$ |
604,700 |
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$ |
(89,691 |
) |
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$ |
515,009 |
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39 |
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Destination resort agreements |
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17,900 |
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(8,377 |
) |
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9,523 |
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15 |
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Trade name |
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6,200 |
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(700 |
) |
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5,500 |
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Indefinite-life |
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Licensing agreement |
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1,000 |
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(1,000 |
) |
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- |
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8 |
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$ |
629,800 |
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$ |
(99,768 |
) |
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$ |
530,032 |
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The Company amortizes intangible assets with definite lives on a straight-line basis over their estimated useful lives. Amortization expense for the years ended December 31, 2025, 2024 and 2023 was $16.5 million, $16.6 million and $16.8 million, respectively.
Amortization expense is estimated to be $16.5 million in each of the next five years beginning in 2026.
During the years ended December 31, 2025, 2024 and 2023, we recognized impairment losses of $2.4 million, $0.4 million and $1.3 million, respectively, related to destination resorts agreements in our consolidated statement of operations. During the year ended December 31, 2025, we recognized $0.1 million of impairment losses in our consolidated statement of operations related to trade name. During the year ended December 31, 2023, we recognized $0.4 million of impairment losses in our consolidated statement of operations related to licensing agreement. See Note 15-"Fair Value Measurements and Derivatives" for further information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 30, 2020 | |
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.