INNOVATE Corp

For the period ended Dec 31, 2023. Filed Mar 6, 2024.

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FY2023 · Filed Mar 6, 2024

VATE$5.11-5.7%Stored close · as of Nov 10, 2026

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Contents

(8) Goodwill and Intangibles, Net

Goodwill and Intangibles, Net

Goodwill

The carrying amounts of goodwill by segment were as follows (in millions):

	Infrastructure	Spectrum	Total
Balance at December 31, 2021	$106.0	$21.4	$127.4
Translation	(0.3)	—	(0.3)
Balance at December 31, 2022	$105.7	$21.4	$127.1
Translation	—	—	—
Balance as of December 31, 2023	$105.7	$21.4	$127.1

Indefinite-lived Intangible Assets

The carrying amounts of indefinite-lived intangible assets were as follows (in millions):

	December 31,
	2023	2022
FCC licenses	$106.3	$106.3
Total	$106.3	$106.3

For the year ended December 31, 2022, the Company recorded impairment charges of $0.2 million which are reflected in Other operating loss in the Consolidated Statements of Operations. The impairment charges related to non-core FCC licenses which were sold or expired in order to bring their carrying value equal to the agreed upon sales price prior to the execution of the sale or expiration. There wereno impairment charges recorded to indefinite lived intangible assets for the year ended December 31, 2023.

The weighted-average period prior to the next renewal for FCC licenses was 6.2 years and 6.6 years as of December 31, 2023 and 2022, 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):

	December 31,
Weighted-Average Original Useful Life · 2023 · 2022
Gross Carrying Amount · Accumulated Amortization · Net · Gross Carrying Amount · Accumulated Amortization · Net
Trade names	15 years	$25.2	$(9.4)	$15.8	$25.4	$(8.0)	$17.4
Customer relationships and contracts	11 years	87.6	(44.2)	43.4	87.6	(35.4)	52.2
Channel sharing arrangements	35 years	12.6	(1.8)	10.8	12.6	(1.4)	11.2
Other	12 years	3.9	(1.3)	2.6	4.1	(1.1)	3.0
Total		$129.3	$(56.7)	$72.6	$129.7	$(45.9)	$83.8

For the year ended December 31, 2022, the Company recorded impairment charges to definite lived intangible assets of $1.5 million, which are reflected in Other operating loss in the Consolidated Statements of Operations. The impairment charges related to the impairment of the HC2 Network Program License Agreement ("PLA") due to a decline in performance. There wereno impairment charges recorded to definite lived intangible assets for the year ended December 31, 2023.

Amortization expense for definite lived intangible assets was $11.1 million and $16.6 million for the years ended December 31, 2023 and 2022, respectively, and was included in Depreciation and amortization in the Consolidated Statements of Operations.

Amortization

Future estimated annual amortization expense for intangible assets as of December 31, 2023 is as follows (in millions):

Estimated Amortization
2024	$7.4
2025	7.3
2026	6.8
2027	5.0
2028	5.0
Thereafter	41.1
Total	$72.6

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