Select Water Solutions, Inc. Goodwill & Intangibles Disclosure
NOTE 9—GOODWILL AND OTHER INTANGIBLE ASSETS
The Company recorded $30.3 million and $13.5 million of goodwill in connection with the Company’s 2025 and 2024 acquisitions, respectively. See “Note 3—Acquisitions” for additional information. Goodwill is evaluated for impairment annually, or more frequently if indicators of impairment exist. In performing its annual goodwill impairment assessment, the Company may elect to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying amount. During the fourth quarter of 2025, the Company performed its annual qualitative impairment assessment of goodwill and based on the evaluation of relevant
events and circumstances, concluded that it is not more likely than not that the fair value of the reporting units is less than its carrying amount. Accordingly, no quantitative impairment test was required, and the Company determined there was no impairment of the carrying value of goodwill.
The changes in the carrying amounts of goodwill by reportable segment for the year ended December 31, 2025 and 2024 is as follows:
Water | Water | ||||||||
| Infrastructure | | Services | | Total | ||||
(in thousands) | |||||||||
Balance as of December 31, 2023 | $ | 3,245 | $ | 1,438 | $ | 4,683 | |||
Additions | 13,532 | — | 13,532 | ||||||
Balance as of December 31, 2024 | $ | 16,777 | $ | 1,438 | $ | 18,215 | |||
Additions | 30,270 | — | 30,270 | ||||||
Balance as of December 31, 2025 | $ | 47,047 | $ | 1,438 | $ | 48,485 | |||
The components of other intangible assets as of December 31, 2025 and 2024 are as follows:
As of December 31, 2025 | As of December 31, 2024 | |||||||||||||||||
| Gross | | Accumulated | | Net | | Gross | Accumulated | | Net | ||||||||
Value | Amortization | Value | Value | Amortization | Value | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Definite-lived | ||||||||||||||||||
Customer relationships | $ | 187,230 | $ | (91,596) | $ | 95,634 | $ | 187,706 | $ | (76,638) | $ | 111,068 | ||||||
Patents and other intellectual property | 14,272 | (10,060) | 4,212 | 14,272 | (8,521) | 5,751 | ||||||||||||
Water rights | 1,750 | (673) | 1,077 |
| 3,125 |
| (1,510) |
| 1,615 | |||||||||
Total definite-lived | 203,252 | (102,329) | 100,923 | 205,103 | (86,669) | 118,434 | ||||||||||||
Indefinite-lived | ||||||||||||||||||
Water rights | 5,281 | — | 5,281 | 5,281 | — | 5,281 | ||||||||||||
Total indefinite-lived | 5,281 | — | 5,281 | 5,281 | — | 5,281 | ||||||||||||
Total other intangible assets, net | $ | 208,533 | $ | (102,329) | $ | 106,204 | $ | 210,384 | $ | (86,669) | $ | 123,715 | ||||||
The weighted-average periods for customer relationships, patents and other intellectual property, and water rights were 12.8 years, 9.8 years, and 3.3 years, respectively, and the weighted-average remaining amortization periods for customer relationships, patents and other intellectual property, and water rights were 7.6 years, 4.8 years and 2.0 years, respectively, as of December 31, 2025. The indefinite-lived water rights are generally subject to renewal every to ten years at immaterial renewal costs.
See “Note 8—Property and Equipment” for the amortization expense during the years ended December 31, 2025, 2024 and 2023, respectively. Annual amortization of intangible assets for the next five years and beyond is as follows:
Year Ending December 31, | | Amount | |
(in thousands) | |||
2026 | $ | 17,424 | |
2027 |
| 16,922 | |
2028 |
| 14,655 | |
2029 |
| 14,114 | |
2030 |
| 11,725 | |
Thereafter | 26,083 | ||
Total | $ | 100,923 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 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.