Uniti Group Inc.UNIT
Uniti Group Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets and Liabilities:
Windstream acquired wireless spectrum licenses in the 3.5, 24, 28 and 37 GHz bands in auctions conducted by the FCC during 2020 and 2019 for $78.9 million. The spectrum licenses have an initial term of 10.0 years and are subject to renewal by the FCC. Currently, there are no legal, regulatory, contractual, competitive, economic or other factors that would limit the useful life of the spectrum; and therefore, the licenses are considered indefinite-lived intangible assets. As of December 31, 2025, the weighted average remaining renewal period for the acquired spectrum licenses was 4.6 years.
Carrying value of finite-lived intangible assets and liabilities were as follows:
Changes in the carrying amount of goodwill occurring during the year ended December 31, 2025 and 2024, are as follows:
| (Millions) | Kinetic | Uniti Solutions | Fiber Infrastructure (a) | Total | ||||||||||||||||||||||
| Goodwill as of December 31, 2023 and 2024 | $ | — | $ | — | $ | 672.9 | $ | 672.9 | ||||||||||||||||||
| Accumulated impairment charges as of December 31, 2023 and 2024 | — | — | (515.5) | (515.5) | ||||||||||||||||||||||
| Balance as of December 31, 2023 and 2024 | — | — | 157.4 | 157.4 | ||||||||||||||||||||||
| Acquisition of Windstream | 763.7 | 192.2 | 45.0 | 1,000.9 | ||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 763.7 | $ | 192.2 | $ | 202.4 | $ | 1,158.3 | ||||||||||||||||||
| Goodwill as of December 31, 2025 | $ | 763.7 | $ | 192.2 | $ | 717.9 | $ | 1,673.8 | ||||||||||||||||||
| Accumulated impairment charges as of December 31, 2025 | — | — | (515.5) | (515.5) | ||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 763.7 | $ | 192.2 | $ | 202.4 | $ | 1,158.3 | ||||||||||||||||||
(a)Prior to the Merger, all goodwill related to the former Uniti Fiber segment. In connection with the Merger, the former Uniti Fiber and Uniti Leasing segments were combined with the CLEC portion of Windstream’s acquired wholesale business and renamed Fiber Infrastructure.
Indefinite-lived intangible assets were as follows on December 31, 2025:
| (Millions) | ||||||||
| FCC Spectrum licenses | $ | 78.9 | ||||||
Windstream acquired wireless spectrum licenses in the 3.5, 24, 28 and 37 GHz bands in auctions conducted by the FCC during 2020 and 2019 for $78.9 million. The spectrum licenses have an initial term of 10.0 years and are subject to renewal by the FCC. Currently, there are no legal, regulatory, contractual, competitive, economic or other factors that would limit the useful life of the spectrum; and therefore, the licenses are considered indefinite-lived intangible assets. As of December 31, 2025, the weighted average remaining renewal period for the acquired spectrum licenses was 4.6 years.
Carrying value of finite-lived intangible assets and liabilities were as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| (Millions) | Original Cost | Accumulated Amortization | Net Carrying Value | Original Cost | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||||
| Finite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
| Customer relationships | $ | 750.0 | $ | (104.8) | $ | 645.2 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
| Customer lists | 416.1 | (197.1) | 219.0 | 416.1 | (174.3) | 241.8 | ||||||||||||||||||||||||||||||||
| IPv4 addresses (a) | 179.7 | (4.4) | 175.3 | — | — | — | ||||||||||||||||||||||||||||||||
| Trade name | 115.0 | (3.2) | 111.8 | — | — | — | ||||||||||||||||||||||||||||||||
| Contracts | 52.5 | (34.5) | 18.0 | 52.5 | (27.9) | 24.6 | ||||||||||||||||||||||||||||||||
| Rights of way | 48.6 | (3.5) | 45.1 | 10.5 | (1.5) | 9.0 | ||||||||||||||||||||||||||||||||
| Total | $ | 1,561.9 | $ | (347.5) | $ | 1,214.4 | $ | 479.1 | $ | (203.7) | $ | 275.4 | ||||||||||||||||||||||||||
| Finite-lived intangible liabilities: | ||||||||||||||||||||||||||||||||||||||
| Below-market leases | $ | 15.2 | $ | (9.9) | $ | 5.3 | $ | 191.2 | $ | (45.5) | $ | 145.7 | ||||||||||||||||||||||||||
(a)Subsequent to August 1, 2025, the Company sold certain unused IPv4 addresses with a net carrying value of $6.7 million for proceeds of $5.0 million payable in cash.
The amortization methodology and useful lives for finite-lived intangible assets and liabilities were as follows:
As of December 31, 2025, the remaining weighted average amortization period of the Company’s intangible assets was 4.6 years for customer relationships, 12.5 years for customer lists, 17.1 years for IPv4 addresses, 14.6 years for the trade name, 2.8 years for contracts, and 12.0 years for rights of way. As of December 31, 2025, the total remaining weighted average amortization period for all finite-lived intangible assets was 9.0 years.
| Amortization Methodology | Estimated Useful Life | |||||||||||||
| Intangible assets: | ||||||||||||||
| Customer relationships | sum of years digits | 5 years | ||||||||||||
| Customer lists | straight-line | 14-30 years | ||||||||||||
| IPv4 addresses | straight-line | 17.5 years | ||||||||||||
| Trade name | straight-line | 15 years | ||||||||||||
| Contracts | straight-line | 8 years | ||||||||||||
| Rights of way | straight-line | 9.4 - 30 years | ||||||||||||
| Intangible liabilities: | ||||||||||||||
| Below-market leases | straight-line | 8 years | ||||||||||||
As of December 31, 2025, the remaining weighted average amortization period of the Company’s intangible assets was 4.6 years for customer relationships, 12.5 years for customer lists, 17.1 years for IPv4 addresses, 14.6 years for the trade name, 2.8 years for contracts, and 12.0 years for rights of way. As of December 31, 2025, the total remaining weighted average amortization period for all finite-lived intangible assets was 9.0 years.
Amortization expense for the years ended December 31, 2025, 2024, and 2023 was $143.8 million, $29.7 million, and $29.7 million, respectively.
Amortization expense for intangible assets subject to amortization is estimated to be as follows for each of the years ended December 31:
| Year | (Millions) | |||||||
| 2026 | $ | 280.7 | ||||||
| 2027 | 230.7 | |||||||
| 2028 | 179.1 | |||||||
| 2029 | 124.1 | |||||||
| 2030 | 74.2 | |||||||
| Thereafter | 325.6 | |||||||
| Total | $ | 1,214.4 | ||||||
We recognize the amortization of below-market leases in revenue. Revenue related to the amortization of the below-market leases for the years ended December 31, 2025, 2024, and 2023 was $7.0 million, $10.7 million, and $10.7 million, respectively. As of December 31, 2025, the remaining weighted average amortization period of the Company’s intangible liabilities was 2.7 years. Revenue due to the amortization of the below-market leases is estimated to be as follows for each of the years ended December 31:
| Year | (Millions) | |||||||
| 2026 | $ | 1.9 | ||||||
| 2027 | 1.9 | |||||||
| 2028 | 1.5 | |||||||
| Total | $ | 5.3 | ||||||
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.