Sally Beauty Holdings, Inc. Goodwill & Intangibles Disclosure
The changes in the carrying amounts of goodwill during the fiscal years 2025 and 2024 are as follows (in thousands):
|
|
Sally |
|
|
BSG |
|
|
Total |
|
|||
Balance at September 30, 2023 |
|
$ |
75,304 |
|
|
$ |
457,777 |
|
|
|
533,081 |
|
Acquisitions (a) |
|
|
— |
|
|
|
282 |
|
|
|
282 |
|
Adjustments (b) |
|
|
— |
|
|
|
(381 |
) |
|
|
(381 |
) |
Foreign currency translation |
|
|
5,120 |
|
|
|
164 |
|
|
|
5,284 |
|
Balance at September 30, 2024 |
|
$ |
80,424 |
|
|
$ |
457,842 |
|
|
$ |
538,266 |
|
Acquisitions (a) |
|
|
959 |
|
|
|
— |
|
|
|
959 |
|
Adjustments (b) |
|
|
— |
|
|
|
371 |
|
|
|
371 |
|
Divestiture of business |
|
|
(132 |
) |
|
|
— |
|
|
|
(132 |
) |
Foreign currency translation |
|
|
2,222 |
|
|
|
(1,012 |
) |
|
|
1,210 |
|
Balance at September 30, 2025 |
|
$ |
83,473 |
|
|
$ |
457,201 |
|
|
$ |
540,674 |
|
The following table reflects our other intangible assets, excluding goodwill, on our consolidated balance sheets. Once an intangible asset becomes fully amortized, the original cost and accumulated amortization is removed in the subsequent period. As of September 30, 2025 and 2024, we had the following (in thousands):
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
||||||||||||||||||
|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Net |
|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Net |
|
||||||
Definite-lived Intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Distribution rights (a) |
|
$ |
16,620 |
|
|
$ |
(4,901 |
) |
|
$ |
11,719 |
|
|
$ |
22,508 |
|
|
$ |
(9,273 |
) |
|
$ |
13,235 |
|
Customer relationships |
|
|
5,916 |
|
|
|
(5,711 |
) |
|
|
205 |
|
|
|
22,024 |
|
|
|
(20,820 |
) |
|
|
1,204 |
|
Other intangible assets |
|
|
4,724 |
|
|
|
(4,074 |
) |
|
|
650 |
|
|
|
4,567 |
|
|
|
(3,668 |
) |
|
|
899 |
|
Total definite-lived intangible assets |
|
|
27,260 |
|
|
|
(14,686 |
) |
|
|
12,574 |
|
|
|
49,099 |
|
|
|
(33,761 |
) |
|
|
15,338 |
|
Indefinite-lived Intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trade names (b) |
|
|
40,444 |
|
|
|
— |
|
|
|
40,444 |
|
|
|
44,622 |
|
|
|
— |
|
|
|
44,622 |
|
Total intangible assets, excluding |
|
$ |
67,704 |
|
|
$ |
(14,686 |
) |
|
$ |
53,018 |
|
|
$ |
93,721 |
|
|
$ |
(33,761 |
) |
|
$ |
59,960 |
|
Our definite-lived intangible assets are amortized on a straight-line basis over the period that we expected an economic benefit, typically over periods of to ten years. For fiscal years 2025, 2024 and 2023, amortization expense related to intangible assets totaled $3.5 million, $3.2 million, and $3.4 million, respectively and are included within selling, general and administrative expenses on our consolidated statements of earnings.
As of September 30, 2025, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands):
Fiscal Year: |
|
|
|
|
2026 |
|
$ |
2,607 |
|
2027 |
|
|
1,996 |
|
2028 |
|
|
1,433 |
|
2029 |
|
|
1,224 |
|
2030 |
|
|
1,179 |
|
Thereafter |
|
|
4,135 |
|
|
|
$ |
12,574 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 13, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Nov 16, 2023 | |
| 2022 | Nov 17, 2022 | |
| 2021 | Nov 22, 2021 | |
| 2020 | Nov 24, 2020 | |
| 2019 | Nov 25, 2019 | |
| 2018 | Nov 14, 2018 | |
| 2017 | Nov 15, 2017 | |
| 2016 | Nov 15, 2016 | |
| 2015 | Nov 12, 2015 | |
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.