Polaris Inc.PII
Polaris Inc. Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2025 and 2024 were as follows (in millions):
| 2025 | 2024 | ||||||||||
| Goodwill | $ | 348.8 | $ | 393.5 | |||||||
| Other intangible assets, net | 451.2 | 542.7 | |||||||||
| Total goodwill and other intangible assets, net | $ | 800.0 | $ | 936.2 | |||||||
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 were as follows (in millions):
| Off Road | On Road | Marine | Total | ||||||||||||||||||||
| Balance as of December 31, 2023 | $ | 116.6 | $ | 50.7 | $ | 227.1 | $ | 394.4 | |||||||||||||||
| Goodwill acquired and related adjustments | 0.4 | — | 3.5 | 3.9 | |||||||||||||||||||
| Currency translation effect on foreign goodwill balances | (0.8) | (4.0) | — | (4.8) | |||||||||||||||||||
| Balance as of December 31, 2024 | $ | 116.2 | $ | 46.7 | $ | 230.6 | $ | 393.5 | |||||||||||||||
| Goodwill impairment | — | (52.6) | — | (52.6) | |||||||||||||||||||
| Currency translation effect on foreign goodwill balances | 2.0 | 5.9 | — | 7.9 | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 118.2 | $ | — | $ | 230.6 | $ | 348.8 | |||||||||||||||
In the second quarter of 2025, as a result of a continued decline in financial performance and prolonged deterioration of industry conditions, the Company determined it was more-likely-than-not that the fair value of the On Road reporting unit was less than its carrying value. As a result, the Company performed a quantitative goodwill impairment test of the On Road reporting unit in the second quarter of 2025.
Under the quantitative goodwill impairment test, the fair value of the reporting unit was determined using a discounted cash flow analysis and a market approach. Determining the fair value of the reporting unit required the use of significant judgment, including judgment surrounding discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for the reporting unit, and determination of the weighted average cost of capital. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, changes in raw material prices and growth expectations for the industries and end markets in which the Company participates. Inputs used to estimate fair value included significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy.
If the carrying value of a reporting unit that includes goodwill exceeds its fair value, the goodwill is considered impaired and an impairment loss is recognized at the amount by which the carrying value exceeds fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit.
As a result of this analysis, the Company recorded an impairment charge of $52.6 million in the second quarter of 2025 related to goodwill of the On Road reporting unit. Subsequent to the impairment charge, there is no remaining goodwill balance for the On Road reporting unit. The charge is included in goodwill impairment in the consolidated statements of (loss) income.
There were no goodwill impairment charges recorded in 2025 related to the Off Road or Marine reporting units. As of December 31, 2025, accumulated impairment losses totaled $52.6 million under the Company’s current reportable segment structure.
The changes in the net carrying amount of other intangible assets for the years ended December 31, 2025 and 2024 were as follows (in millions):
| 2025 | 2024 | ||||||||||||||||||||||
| Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | ||||||||||||||||||||
| Other intangible assets, beginning | $ | 661.7 | $ | (119.0) | $ | 609.2 | $ | (97.2) | |||||||||||||||
| Other intangible assets acquired | 1.4 | — | 62.7 | — | |||||||||||||||||||
| Other intangible assets disposed of | — | — | (0.1) | 0.1 | |||||||||||||||||||
| Other intangible assets impaired | (80.8) | 9.4 | (9.5) | — | |||||||||||||||||||
| Amortization expense | — | (23.0) | — | (21.9) | |||||||||||||||||||
| Currency translation effect on foreign balances | 1.5 | — | (0.6) | — | |||||||||||||||||||
| Other intangible assets, ending | $ | 583.8 | $ | (132.6) | $ | 661.7 | $ | (119.0) | |||||||||||||||
The components of other intangible assets were as follows (in millions):
| December 31, 2025 | Weighted-average useful life (years) | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Amortizable - dealer/customer related and other | 19 | 342.5 | (132.6) | 209.9 | |||||||||||||||||||
Non-amortizable - brand/trade names | 241.3 | — | 241.3 | ||||||||||||||||||||
Total other intangible assets, net | $ | 583.8 | $ | (132.6) | $ | 451.2 | |||||||||||||||||
| December 31, 2024 | Weighted-average useful life (years) | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Amortizable - dealer/customer related | 19 | 341.2 | (114.8) | 226.4 | |||||||||||||||||||
| Amortizable - developed technology | 10 | 62.7 | (4.2) | 58.5 | |||||||||||||||||||
Non-amortizable - brand/trade names | 257.8 | — | 257.8 | ||||||||||||||||||||
Total other intangible assets, net | 18 | $ | 661.7 | $ | (119.0) | $ | 542.7 | ||||||||||||||||
In the fourth quarter of 2025, as a result of entering into a definitive agreement for the sale of the Indian Motorcycle business, impairment charges of $17.5 million were recorded for the related non-amortizable brand/trade name in the Company’s On Road segment. This charge is included in in the consolidated statements of (loss) income. Additional impairment charges of $53.9 million were recorded in the fourth quarter of 2025 related to a non-amortizable brand/trade name and amortizable developed technology in the Company’s Off Road segment as a result of changes in the planned usage of such assets. These charges were included in general and administrative expenses in the consolidated statements of (loss) income. In 2024, the Company recorded impairment charges of $9.5 million related to non-amortizable brand/trade names which have also been included in general and administrative expenses in the consolidated statements of (loss) income.
Amortization expense for other intangible assets for the years ended December 31, 2025, 2024 and 2023 was $23.0 million, $21.9 million and $17.7 million, respectively. Estimated future amortization expense for identifiable other intangible assets during the next five years is as follows (in millions):
| 2026 | 2027 | 2028 | 2029 | 2030 | |||||||||||||||||||||||||
| Estimated amortization expense | $ | 18.4 | $ | 18.3 | $ | 17.7 | $ | 17.7 | $ | 17.7 | |||||||||||||||||||
The preceding expected amortization expense is an estimate and actual amounts could differ due to additional other intangible asset acquisitions, changes in foreign currency rates, or impairments of other intangible assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 19, 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.