QuidelOrtho CorpQDEL
QuidelOrtho Corp Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets, Net
Changes in goodwill were as follows:
| (In millions) | North America | EMEA | China | JPAC | Latin America | Total | |||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 1,743.9 | $ | 582.4 | $ | 85.7 | $ | 60.9 | $ | 19.1 | $ | 2,492.0 | |||||||||||||||||||||||
| Impairment charge | (1,743.9) | — | (17.3) | (61.4) | — | (1,822.6) | |||||||||||||||||||||||||||||
| Foreign currency translation | — | (16.4) | (1.8) | 0.5 | (2.2) | (19.9) | |||||||||||||||||||||||||||||
| Balance at December 29, 2024 | $ | — | $ | 566.0 | $ | 66.6 | $ | — | $ | 16.9 | $ | 649.5 | |||||||||||||||||||||||
| Impairment charge | — | (614.8) | (68.1) | — | (17.8) | (700.7) | |||||||||||||||||||||||||||||
| Foreign currency translation | — | 48.8 | 1.5 | — | 0.9 | 51.2 | |||||||||||||||||||||||||||||
| Balance at December 28, 2025 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
The gross goodwill balance was $2,472.1 million as of December 29, 2024. Accumulated goodwill impairment losses were $1,822.6 million as of December 29, 2024.
Intangible assets consisted of the following:
| December 28, 2025 | December 29, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Description | Weighted-average useful life (years) | Gross assets | Accumulated amortization | Net | Gross assets | Accumulated amortization | Net | ||||||||||||||||||||||||||||||||||
| Purchased technology | 14.9 | $ | 999.6 | $ | (310.3) | $ | 689.3 | $ | 999.5 | $ | (249.6) | $ | 749.9 | ||||||||||||||||||||||||||||
| Customer relationships | 20.0 | 2,036.2 | (463.5) | 1,572.7 | 2,027.1 | (366.8) | 1,660.3 | ||||||||||||||||||||||||||||||||||
| License agreements | N/A | — | — | — | 3.1 | (3.1) | — | ||||||||||||||||||||||||||||||||||
| Patent and trademark costs | 14.9 | 402.6 | (114.1) | 288.5 | 401.3 | (87.6) | 313.7 | ||||||||||||||||||||||||||||||||||
| Software development costs | 5.5 | 21.5 | (8.2) | 13.3 | 22.7 | (11.0) | 11.7 | ||||||||||||||||||||||||||||||||||
| Total intangible assets | $ | 3,459.9 | $ | (896.1) | $ | 2,563.8 | $ | 3,453.7 | $ | (718.1) | $ | 2,735.6 | |||||||||||||||||||||||||||||
* N/A - Not applicable due to zero balance.
Interim impairment assessment 2025
During the third quarter of 2025, the Company concluded that the sustained decline in the Company’s stock price and market capitalization was a triggering event requiring an interim goodwill impairment assessment for all reporting units. Based on the Company’s interim goodwill impairment assessment in the third quarter of 2025, the Company concluded that the EMEA, China and Latin America reporting units’ carrying values exceeded their respective fair values. As a result, the Company recorded a non-cash goodwill impairment charge of $614.8 million, $68.1 million and $17.8 million in the third quarter of 2025 for the EMEA, China and Latin America reporting units, respectively, which represented a full impairment of the goodwill allocated to these reporting units.
The quantitative goodwill assessment for all reporting units consisted of a fair value calculation that combines an income approach, using a discounted cash flow method, and a market approach, using the guideline public company method. The quantitative goodwill impairment assessment requires the application of a number of significant assumptions, including estimates of future revenue growth rates, EBITDA margins, discount rates and market multiples. The projected future revenue
growth rates and EBITDA margins, and the resulting projected cash flows are based on historical experience and internal annual operating plans reviewed by management, extrapolated over the forecast period. Discount rates are determined using a weighted average cost of capital adjusted for risk factors specific to the reporting units. Market multiples are based on the guideline public company method using comparable publicly traded company multiples of revenue and EBITDA for a group of benchmark companies.
The Company believes the assumptions that were used in the quantitative goodwill impairment assessment are reasonable and consistent with assumptions that would be used by other marketplace participants.
The Company reviews long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Given the indications of possible impairment that occurred during the third quarter of 2025, the Company tested its EMEA, China and Latin America long-lived asset group for recoverability and impairment as of September 28, 2025. Recoverability of long-lived assets is measured by a comparison of the carrying value of an asset group to future undiscounted net cash flows expected to be generated by the asset group. The undiscounted cash flows for the EMEA,China and Latin America long-lived asset group were above the carrying value and the Company determined that the long-lived asset group was recoverable, and no impairment existed as of September 28, 2025.
Interim impairment assessment 2024
During the first quarter of 2024, the Company concluded that (i) the sustained decline in the Company’s stock price and market capitalization that occurred during the first quarter of 2024, (ii) the faster than expected decline in COVID-19 and flu markets, and (iii) the delay in the timing of expected commercialization for SAVANNA were triggering events requiring an interim goodwill impairment assessment for all reporting units.
Based on the Company’s interim goodwill impairment assessment in the first quarter of 2024, the Company concluded that the North America reporting unit’s carrying value exceeded its estimated fair value. As a result, the Company recorded a non-cash goodwill impairment charge of $1.7 billion in the first quarter of 2024 for the North America reporting unit, which represented a full impairment of the goodwill allocated to the North America reporting unit. The decline in the estimated fair value of the North America reporting unit and the resulting impairment were primarily driven by revised short-term and mid-term forecasts for revenue and EBITDA expectations in North America.
Annual impairment assessment 2024
During the fourth quarter of 2024, the Company conducted its annual goodwill impairment test for all reporting units pursuant to its policy. The Company bypassed the qualitative assessment and proceeded directly to the quantitative goodwill impairment test for all reporting units as of the beginning of the fiscal fourth quarter.
Based on the Company’s annual goodwill impairment assessment in the fourth quarter of 2024, the Company concluded that the China and JPAC reporting units’ carrying values exceeded their respective estimated fair values. As a result, the Company recorded non-cash goodwill impairment charges of $17.3 million and $61.4 million in the fourth quarter of 2024 for the China and JPAC reporting units, respectively, which represented a full impairment of the goodwill allocated to the JPAC reporting unit.
The quantitative goodwill impairment assessment for all reporting units consisted of a fair value calculation that combines an income approach, using a discounted cash flow method, and a market approach, using the guideline public company method. The quantitative goodwill impairment assessment requires the application of a number of significant assumptions, including estimates of future revenue growth rates, EBITDA margins, discount rates and market multiples. The projected future revenue growth rates and EBITDA margins, and the resulting projected cash flows are based on historical experience and internal annual operating plans reviewed by management, extrapolated over the forecast period. Discount rates are determined using a weighted average cost of capital adjusted for risk factors specific to the reporting units. Market multiples are based on the guideline public company method using comparable publicly traded company multiples of revenue and EBITDA for a group of benchmark companies.
The Company believes the assumptions that were used in the quantitative goodwill impairment assessment are reasonable and consistent with assumptions that would be used by other marketplace participants.
The Company also reviews long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Given the indications of possible impairment that occurred during the first quarter and fourth quarter of 2024, the Company tested its North America long-lived asset group for recoverability and impairment as of March 31, 2024 and its China and JPAC long-lived asset groups for recoverability and impairment as of December 29, 2024. Recoverability of long-lived assets is measured by a comparison of the carrying value of an asset group to future undiscounted net cash flows expected to be generated by the asset group. The undiscounted cash flows for the North America, China and JPAC long-lived asset groups were above the carrying value and the
Company determined that the long-lived asset groups were recoverable, and no impairment existed as of March 31, 2024 for North America and as of December 29, 2024 for China and JPAC.
Amortization expense related to the capitalized software costs was $3.6 million, $2.7 million and $0.6 million for fiscal years ended 2025, 2024 and 2023, respectively. Amortization expense (including capitalized software costs) was $189.2 million, $203.4 million and $204.8 million for fiscal years ended 2025, 2024 and 2023, respectively.
The expected future annual amortization expense of the Company’s finite-lived intangible assets held as of December 28, 2025 is as follows:
| (In millions) | |||||
| 2026 | $ | 185.4 | |||
| 2027 | 185.5 | ||||
| 2028 | 185.5 | ||||
| 2029 | 185.5 | ||||
| 2030 | 183.3 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
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.