SUN COMMUNITIES INCSUI

SUN COMMUNITIES INC Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20263 min read
5. Goodwill and Other Intangible Assets
Our intangible assets include goodwill, in-place leases, trademarks and trade names, customer relationships, franchise agreements, and other intangible assets.
Goodwill
The measurement periods for the valuation of assets acquired and liabilities assumed in a business combination end as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available on the earlier of (i) the dates of acquisition, or (ii) 12 months after the acquisition dates. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.
Our entire goodwill balance of $9.5 million at December 31, 2025 is attributable to the RV segment. During the year ended December 31, 2025, goodwill of $541.7 million associated with the Safe Harbor subsidiary was allocated to discontinued operations and derecognized in conjunction with the closing of the Safe Harbor Sale. There were no other changes in our goodwill balance during the year ended December 31, 2025.
At October 31, 2025, we performed our annual goodwill impairment test for the RV segment and no impairment of goodwill was identified. During the years ended December 31, 2024 and 2023, we incurred impairment charges of $180.8 million and $369.9 million, respectively, related to the UK segment, primarily driven by a deterioration in the macroeconomic environment in the region, causing a decline in projected future cash flows for our Park Holidays business, bringing the balance associated with the UK segment to zero. As of December 31, 2025 and 2024, the accumulated impairment losses were $550.7 million.
Other Intangible Assets, net
The gross carrying amounts and accumulated amortization of our intangible assets were as follows (in millions):
December 31, 2025December 31, 2024
Other Intangible AssetUseful LifeGross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
In-place leases
7 years
$146.5 $(132.1)$138.8 $(126.4)
Trademarks and trade names
15 years
87.4 (22.6)81.7 (15.4)
Customer relationships
4 years
1.9 (1.9)1.8 (1.3)
Franchise agreements and other intangible assets
10 - 27 years
32.9 (11.3)32.7 (10.0)
Total finite-lived assets$268.7 $(167.9)$255.0 $(153.1)
Indefinite-lived assets - Trademarks, trade names, and otherN/A0.7 — 0.6 — 
Total indefinite-lived assets$0.7 $— $0.6 $— 
Total$269.4 $(167.9)$255.6 $(153.1)
Amortization expenses related to our Other intangible assets were as follows (in millions):
Year Ended December 31,
Other Intangible Asset Amortization Expense202520242023
In-place leases$5.7 $6.2 $8.7 
Trademarks and trade names6.0 5.8 5.7 
Customer relationships0.5 0.5 0.5 
Franchise fees and other intangible assets0.7 0.8 2.2 
Total$12.9 $13.3 $17.1 
We anticipate amortization expense for Other intangible assets to be as follows for the next five years (in millions):
Other Intangible Asset Future Amortization Expense20262027202820292030
In-place leases$4.7 $3.2 $1.9 $1.2 $1.1 
Trademarks and trade names6.1 5.8 5.8 5.7 5.7 
Customer relationships— — — — — 
Franchise agreements and other intangible assets1.3 1.3 1.3 1.3 1.3 
Total$12.1 $10.3 $9.0 $8.2 $8.1 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Feb 23, 2023
2021Feb 22, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 23, 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.

Other Available Disclosures

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