Sun Country Airlines Holdings, LLCSNCY

Sun Country Airlines Holdings, LLC Goodwill & Intangibles Disclosure

10-KFiled Feb 12, 20262 min read
7. GOODWILL AND OTHER INTANGIBLE ASSETS
Components of Goodwill and Other Intangible Assets were as follows:
December 31, 2025
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Value
Goodwill$222,223$—$222,223 
Other Intangible Assets with Finite Lives:
Customer Relationships48,000(30,890)17,110
Over-Market Asset3,741(3,590)151
Other Intangible Assets with Indefinite Lives:
Tradename56,000—56,000
Total Other Intangible Assets107,741(34,480)73,261
Total Goodwill and Other Intangible Assets$329,964$(34,480)$295,484
December 31, 2024
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Value
Goodwill$222,223$—$222,223
Other Intangible Assets with Finite Lives:
Customer Relationships48,000(26,890)21,110
Over-Market Asset3,741(3,013)728
Other Intangible Assets with Indefinite Lives:
Tradename56,000—56,000
Total Other Intangible Assets107,741(29,903)77,838
Total Goodwill and Other Intangible Assets$329,964$(29,903)$300,061
The Company recognized $4,577, $5,713 and $5,300 of amortization expense on Other Intangible Assets with Finite Lives during the years ended December 31, 2025, 2024 and 2023, respectively. During the years ended December 31, 2025, 2024 and 2023, $577, $1,713 and $1,300 of the amortization expense on Other Intangible Assets with Finite Lives is associated with the over-market asset amortization, respectively. The amortization expense associated with the over-market asset is recorded as contra revenue within Other Revenue on the Consolidated Statements of Operations.
Estimated future annual amortization on the Company's Other Intangible Assets with Finite Lives is as follows:
December 31
Annual Amortization of Other Intangible Assets with Finite Lives
2026$4,151 
20274,000 
20284,000 
20294,000 
20301,110 
Total$17,261 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 12, 2025
2023Feb 14, 2024
2022Feb 15, 2023
2021Feb 18, 2022

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.

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