INNOVATE Corp.
For the period ended Dec 31, 2024. Filed Mar 31, 2025.
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FY2024 · Filed Mar 31, 2025
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(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, 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, | ||
|---|---|---|
| 2024 | 2023 | |
| FCC licenses | $107.7 | $106.3 |
| Total | $107.7 | $106.3 |
During the year ended December 31, 2024, the Spectrum segment completed the purchases offive 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 Life · December 31, 2024 | ||||
|---|---|---|---|---|
| Gross Carrying Amount · Accumulated Amortization · Net | ||||
| Trade names | 15 years | $25.1 | $(11.0) | $14.1 |
| Customer relationships and contracts | 11 years | 87.4 | (49.1) | 38.3 |
| Channel sharing arrangements | 35 years | 12.6 | (2.2) | 10.4 |
| Other | 10 years | 3.9 | (2.0) | 1.9 |
| Total | $129.0 | $(64.3) | $64.7 | |
| Weighted-Average Original Useful Life · December 31, 2023 | ||||
|---|---|---|---|---|
| Gross Carrying Amount · Accumulated Amortization · Net | ||||
| Trade names | 15 years | $25.2 | $(9.4) | $15.8 |
| Customer relationships and contracts | 11 years | 87.6 | (44.2) | 43.4 |
| Channel sharing arrangements | 35 years | 12.6 | (1.8) | 10.8 |
| Other | 12 years | 3.9 | (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 |
| 2026 | 6.7 |
| 2027 | 4.9 |
| 2028 | 4.9 |
| 2029 | 4.7 |
| Thereafter | 36.1 |
| Total | $64.7 |
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