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INNOVATE Corp. Goodwill & Intangibles Disclosure

10-KFiled Mar 31, 20252 min read
8. Goodwill and Intangibles, Net

Goodwill

The carrying amounts of goodwill by segment were as follows (in millions):
 
Infrastructure
SpectrumTotal
Balance at December 31, 2022
$105.7 $21.4 $127.1 
Translation adjustments
— — — 
Balance as of December 31, 2023
$105.7 $21.4 $127.1 
Translation adjustments
(0.4)— (0.4)
Balance as of December 31, 2024
$105.3 $21.4 $126.7 

Indefinite-lived Intangible Assets

The carrying amounts of indefinite-lived intangible assets were as follows (in millions):
December 31,
20242023
FCC licenses$107.7 $106.3 
Total$107.7 $106.3 

During the year ended December 31, 2024, the Spectrum segment completed the purchases of five Low Power Television licenses and stations for an aggregate consideration of $1.5 million, with $0.3 million payable on or before April 12, 2025. The acquisitions were accounted for as asset acquisitions.

The weighted-average period prior to the next renewal for FCC licenses was 5.4 years and 6.2 years as of December 31, 2024 and 2023, respectively, after taking into consideration licenses that were successfully renewed shortly after year-end. While broadcast television licenses are issued for a fixed period of time (generally eight years), renewals of these licenses have occurred routinely and at nominal cost. In addition, the Company does not believe that the expiration or non-renewal of any of its FCC licenses would have a material adverse effect on the expected future cash flows and profitability.

Definite Lived Intangible Assets

The gross carrying amounts and accumulated amortization of definite lived intangible assets by major intangible asset class were as follows (in millions):
Weighted-Average Original Useful LifeDecember 31, 2024
Gross Carrying AmountAccumulated AmortizationNet
Trade names15 years$25.1 $(11.0)$14.1 
Customer relationships and contracts11 years87.4 (49.1)38.3 
Channel sharing arrangements35 years12.6 (2.2)10.4 
Other10 years3.9 (2.0)1.9 
Total$129.0 $(64.3)$64.7 

Weighted-Average Original Useful LifeDecember 31, 2023
Gross Carrying AmountAccumulated AmortizationNet
Trade names15 years$25.2 $(9.4)$15.8 
Customer relationships and contracts11 years87.6 (44.2)43.4 
Channel sharing arrangements35 years12.6 (1.8)10.8 
Other12 years3.9 (1.3)2.6 
Total$129.3 $(56.7)$72.6 

Amortization expense for definite lived intangible assets was $7.9 million and $11.1 million for the years ended December 31, 2024 and 2023, respectively. Amortization expense is included in Depreciation and amortization in the Consolidated Statements of Operations.
Amortization

Future estimated annual amortization expense for intangible assets as of December 31, 2024, is as follows (in millions):
Estimated Amortization
2025
$7.4 
20266.7 
20274.9 
20284.9 
20294.7 
Thereafter36.1 
Total$64.7 

Historical Timeline

Fiscal YearFiled
2024Mar 31, 2025Showing above
2023Mar 6, 2024
2022Mar 14, 2023
2021Mar 9, 2022
2019Mar 16, 2020
2017Mar 14, 2018

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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