Sinclair, Inc.SBGI
Sinclair, Inc. Goodwill & Intangibles Disclosure
4. GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS:
Goodwill, which arises from the purchase price exceeding the assigned value of the net assets of an acquired business, represents the value attributable to unidentifiable intangible elements being acquired. The change in the carrying amount of goodwill as of December 31, 2025 and 2024 was as follows (in millions):
| Local media | Tennis | Other | Consolidated | ||||||||||||||||||||
| Balance at December 31, 2023 | $ | 2,016 | $ | 61 | $ | 5 | $ | 2,082 | |||||||||||||||
| Balance at December 31, 2024 | $ | 2,016 | $ | 61 | $ | 5 | $ | 2,082 | |||||||||||||||
| Acquisition | — | — | 15 | 15 | |||||||||||||||||||
| Disposition | (12) | — | — | (12) | |||||||||||||||||||
| Balance at December 31, 2025 | $ | 2,004 | $ | 61 | $ | 20 | $ | 2,085 | |||||||||||||||
Our accumulated goodwill impairment was $414 million as of both December 31, 2025 and 2024, all of which related to our local media segment.
For our annual goodwill impairment test related to our local media, tennis, and other reporting units in 2025, we elected to perform a quantitative assessment and concluded that the fair value substantially exceeded the carrying value for the reporting units in which we performed a quantitative assessment. The key assumptions used to determine the fair value of our local media, tennis, and other reporting units consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, profit margins, and growth rates. The discount rate used to determine the fair value of our local media, tennis, and other reporting units is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television broadcasting company and includes adjustments for market risk and company specific risk. Estimated cash flows are based upon internally developed estimates and growth rates and profit margins are based on market studies, industry knowledge, and historical performance.
For our annual goodwill impairment tests related to our local media, tennis, and other reporting units in 2024 and 2023 we concluded that it was more-likely-than-not that goodwill was not impaired for the reporting units in which we performed a qualitative assessment. The qualitative factors reviewed during our annual assessments indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of our reporting units. We did not have any indicators of impairment in any interim period in 2025 or 2024 and therefore did not perform interim impairment tests for goodwill during those periods.
As of December 31, 2025 and 2024, the carrying amount of our indefinite-lived intangible assets was as follows (in millions):
| Local media | Tennis | Other | Consolidated | ||||||||||||||||||||
| Balance at December 31, 2023 (a) | $ | 123 | $ | 24 | $ | 3 | $ | 150 | |||||||||||||||
| Balance at December 31, 2024 (a) (b) | $ | 123 | $ | 24 | $ | 3 | $ | 150 | |||||||||||||||
| Acquisition | 1 | — | — | 1 | |||||||||||||||||||
| Disposition | (2) | — | — | (2) | |||||||||||||||||||
| Balance at December 31, 2025 (a) (b) | $ | 122 | $ | 24 | $ | 3 | $ | 149 | |||||||||||||||
(a)Our indefinite-lived intangible assets in our local media segment relate to broadcast licenses and our indefinite-lived intangible assets in our tennis segment and other relate to trade names.
(b)Approximately $12 million and $14 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2025 and 2024, respectively.
We performed our annual impairment tests for indefinite-lived intangibles in 2025, 2024 and 2023 and as a result of our qualitative assessments, we recorded no impairment.
The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in millions):
| As of December 31, 2025 | |||||||||||||||||
| Gross Carrying Value | Accumulated Amortization | Net | |||||||||||||||
| Amortized intangible assets: | |||||||||||||||||
| Customer relationships | $ | 1,118 | $ | (849) | $ | 269 | |||||||||||
| Network affiliation | $ | 1,426 | $ | (1,171) | $ | 255 | |||||||||||
| Other | 42 | (33) | 9 | ||||||||||||||
| Total other definite-lived intangible assets (a) | $ | 1,468 | $ | (1,204) | $ | 264 | |||||||||||
| Total definite-lived intangible assets | $ | 2,586 | $ | (2,053) | $ | 533 | |||||||||||
| As of December 31, 2024 | |||||||||||||||||
| Gross Carrying Value | Accumulated Amortization | Net | |||||||||||||||
| Amortized intangible assets: | |||||||||||||||||
| Customer relationships | $ | 1,098 | $ | (796) | $ | 302 | |||||||||||
| Network affiliation | $ | 1,435 | $ | (1,112) | $ | 323 | |||||||||||
| Other | 36 | (31) | 5 | ||||||||||||||
| Total other definite-lived intangible assets (a) | $ | 1,471 | $ | (1,143) | $ | 328 | |||||||||||
| Total definite-lived intangible assets | $ | 2,569 | $ | (1,939) | $ | 630 | |||||||||||
(a)Approximately $5 million and $26 million of definite-lived intangible assets relate to consolidated VIEs as of December 31, 2025 and 2024, respectively.
Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives. The definite-lived intangible assets are amortized over a weighted average useful life of 14 years for customer relationships and 15 years for network affiliations. The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2025, 2024, and 2023 was $145 million, $149 million, and $166 million, respectively. We analyze specific definite-lived intangibles for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets. There were no impairment charges recorded for the years ended December 31, 2025, 2024, and 2023, as there were no indicators of impairment.
The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in millions):
| 2026 | $ | 145 | |||
| 2027 | 131 | ||||
| 2028 | 105 | ||||
| 2029 | 70 | ||||
| 2030 | 37 | ||||
| 2031 and thereafter | 45 | ||||
| $ | 533 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 29, 2024 | |
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.