TKO Group Holdings, Inc. Goodwill & Intangibles Disclosure
6. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in the carrying value of Goodwill are as follows (in thousands):
|
|
UFC (1) |
|
|
WWE (2) |
|
|
IMG |
|
|
Corporate and Other |
|
|
Total |
|
|||||
Balance — December 31, 2023 |
|
$ |
2,602,639 |
|
|
$ |
5,063,846 |
|
|
|
738,135 |
|
|
|
39,780 |
|
|
$ |
8,444,400 |
|
Acquisitions |
|
|
— |
|
|
|
(707 |
) |
|
|
— |
|
|
|
— |
|
|
|
(707 |
) |
Foreign currency translation and other |
|
|
— |
|
|
|
(1,559 |
) |
|
|
(141 |
) |
|
|
— |
|
|
|
(1,700 |
) |
Balance — December 31, 2024 |
|
|
2,602,639 |
|
|
|
5,061,580 |
|
|
|
737,994 |
|
|
|
39,780 |
|
|
|
8,441,993 |
|
Acquisitions |
|
|
— |
|
|
|
2,133 |
|
|
|
— |
|
|
|
— |
|
|
|
2,133 |
|
Foreign exchange |
|
|
— |
|
|
|
78 |
|
|
|
682 |
|
|
|
— |
|
|
|
760 |
|
Balance — December 31, 2025 |
|
$ |
2,602,639 |
|
|
$ |
5,063,791 |
|
|
$ |
738,676 |
|
|
$ |
39,780 |
|
|
$ |
8,444,886 |
|
There were no dispositions or impairments to goodwill during the years ended December 31, 2025 and 2024.
Intangible Assets, net
The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2025 (in thousands):
|
|
Gross Amount |
|
|
Accumulated |
|
|
Carrying Value |
|
|||
Finite-lived: |
|
|
|
|
|
|
|
|
|
|||
Trademarks and trade names |
|
$ |
3,020,370 |
|
|
$ |
(622,261 |
) |
|
$ |
2,398,109 |
|
Customer relationships |
|
|
1,639,552 |
|
|
|
(988,742 |
) |
|
|
650,810 |
|
Other (1) |
|
|
189,758 |
|
|
|
(118,353 |
) |
|
|
71,405 |
|
|
|
$ |
4,849,680 |
|
|
$ |
(1,729,356 |
) |
|
$ |
3,120,324 |
|
Indefinite-lived: |
|
|
|
|
|
|
|
|
|
|||
Trademarks and trade names |
|
$ |
187,910 |
|
|
$ |
— |
|
|
$ |
187,910 |
|
Owned events |
|
|
19,628 |
|
|
|
— |
|
|
|
19,628 |
|
Total intangible assets |
|
$ |
5,057,218 |
|
|
$ |
(1,729,356 |
) |
|
$ |
3,327,862 |
|
The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2024 (in thousands):
|
|
Gross Amount |
|
|
Accumulated |
|
|
Carrying Value |
|
|||
Finite-lived: |
|
|
|
|
|
|
|
|
|
|||
Trademarks and trade names |
|
$ |
3,011,169 |
|
|
$ |
(489,148 |
) |
|
$ |
2,522,021 |
|
Customer relationships |
|
|
1,630,070 |
|
|
|
(792,389 |
) |
|
|
837,681 |
|
Other (1) |
|
|
165,998 |
|
|
|
(76,366 |
) |
|
|
89,632 |
|
|
|
$ |
4,807,237 |
|
|
$ |
(1,357,903 |
) |
|
$ |
3,449,334 |
|
Indefinite-lived: |
|
|
|
|
|
|
|
|
|
|||
Trademarks and trade names |
|
$ |
181,649 |
|
|
$ |
— |
|
|
$ |
181,649 |
|
Owned events |
|
|
18,920 |
|
|
|
— |
|
|
|
18,920 |
|
Total intangible assets |
|
$ |
5,007,806 |
|
|
$ |
(1,357,903 |
) |
|
$ |
3,649,903 |
|
Amortization of intangible assets was $367.8 million, $341.9 million, and $168.7 million during the years ended December 31, 2025, 2024 and 2023, respectively, which is recognized within depreciation and amortization in the consolidated statements of operations.
During the third quarter of 2025, following the modification of a related media revenue arrangement, the Company modified the remaining useful life for one of its customer relationships assets within the WWE segment. The change in useful life of this asset resulted in the acceleration of $80.1 million of amortization expenses during the year ended December 31, 2025.
Estimated annual intangible amortization, including amortization of intangible assets acquired in the TKO Transactions and the Endeavor Asset Acquisition, for the next five years and thereafter is as follows (in thousands):
|
|
Total |
|
|
2026 |
|
$ |
308,774 |
|
2027 |
|
|
228,020 |
|
2028 |
|
|
210,289 |
|
2029 |
|
|
206,994 |
|
2030 |
|
|
190,895 |
|
Thereafter |
|
|
1,975,352 |
|
Total remaining amortization |
|
$ |
3,120,324 |
|
Annual Impairment Assessments
During the years ended December 31, 2025, 2024 and 2023, the Company completed its annual impairment review of goodwill and indefinite-lived intangibles. The Company did not record any impairment charges related to such reviews during the years ended December 31, 2025 and 2024. For the year ended December 31, 2023, the Company recorded total impairment charges of $7.5 million for goodwill and $14.0 million for driven by lower projections. These impairment charges are related to the IMG segment and are included as impairment charges within the Company’s consolidated statements of operations. The Company’s fair value of goodwill was determined by EGH’s assessment based on discounted cash flows using an applicable discount rate for the reporting units containing the Acquired Businesses. Intangible assets were valued based on a relief from royalty method or an excess earnings method.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 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.