READING INTERNATIONAL INC Goodwill & Intangibles Disclosure
The table below summarizes goodwill by business segment:
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(Dollars in thousands) |
| Cinema |
| Real Estate |
| Total | |||
Balance at January 1, 2024 |
| $ | 20,311 |
| $ | 5,224 |
| $ | 25,535 |
Foreign currency translation adjustment |
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| (1,823) |
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| — |
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| (1,823) |
Balance at December 31, 2024 |
| $ | 18,488 |
| $ | 5,224 |
| $ | 23,712 |
Foreign currency translation adjustment |
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| 891 |
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| — |
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| 891 |
Balance at December 31, 2025 |
| $ | 19,379 |
| $ | 5,224 |
| $ | 24,603 |
Our Company is required to test goodwill and other intangible assets for impairment on an annual basis and, if current events or circumstances require, on an interim basis. To test the impairment of goodwill, our Company compares the fair value of each reporting unit to its carrying amount, including the goodwill, to determine if there is potential goodwill impairment. A reporting unit is generally one level below the operating segment. The most recent annual assessment occurred in the fourth quarter of 2025. The assessment results, as described at Note 2 - Liquidity, indicated that there is no impairment to our goodwill as of December 31, 2025.
The tables below summarize intangible assets other than goodwill:
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| December 31, 2025 | ||||||||||
(Dollars in thousands) |
| Beneficial |
| Trade |
| Other |
| Total | ||||
Gross carrying amount |
| $ | 10,458 |
| $ | 9,024 |
| $ | 4,303 |
| $ | 23,785 |
Less: accumulated amortization |
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| (10,313) |
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| (8,229) |
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| (3,667) |
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| (22,209) |
Less: impairment charges |
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Net intangible assets other than goodwill |
| $ | 145 |
| $ | 795 |
| $ | 636 |
| $ | 1,576 |
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| December 31, 2024 | ||||||||||
(Dollars in thousands) |
| Beneficial |
| Trade |
| Other |
| Total | ||||
Gross carrying amount |
| $ | 10,458 |
| $ | 9,024 |
| $ | 4,349 |
| $ | 23,831 |
Less: accumulated amortization |
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| (10,290) |
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| (8,102) |
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| (3,639) |
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| (22,031) |
Less: impairment charges |
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Net intangible assets other than goodwill |
| $ | 168 |
| $ | 922 |
| $ | 710 |
| $ | 1,800 |
Beneficial leases relate to our operations as lessor. Trade names are amortized using an accelerated amortization method over an estimated useful life of 30 years, and other intangible assets over their estimated useful life of up to 30 years (except for transferrable liquor licenses, which are indefinite-lived assets, with a balance of $668,000 and $745,000 as of December 31, 2025 and 2024).
For the years ended December 31, 2025, 2024, and 2023, our amortization expense was $140,000, $247,000, and $297,000, respectively.
As of December 31, 2025, the estimated amortization expense for our amortizable intangibles, in the five succeeding years and thereafter is as follows:
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(Dollars in thousands) |
| Estimated | |
2026 |
| $ | 127 |
2027 |
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| 116 |
2028 |
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| 106 |
2029 |
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| 96 |
2030 |
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| 96 |
Thereafter |
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| 367 |
Total future amortization expense |
| $ | 908 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Apr 29, 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.