Quarterly report [Sections 13 or 15(d)]

Goodwill and Intangible Assets

v3.26.1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill

Changes in the carrying amount of goodwill for the three months ended March 31, 2026 were as follows (in thousands):
Carrying Amount
Balance as of December 31, 2025 $ 641,242 
Measurement period adjustments (2,353)
Balance as of March 31, 2026 $ 638,889 

Goodwill decreased during the three months ended March 31, 2026 in connection with measurement period adjustments for the Aero 3 acquisition. See Note (2) "Acquisitions" for further information.

Intangible Assets

Intangible assets consisted of the following (in thousands):
Weighted-average
Useful Life
(in years)
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
March 31, 2026
Customer-related
 12.2 $ 403,974  $ (108,919) $ 295,055 
Distribution rights
 15.1 26,600  (2,846) 23,754 
Total
 12.4 $ 430,574  $ (111,765) $ 318,809 
December 31, 2025      
Customer-related
 12.2 $ 396,150  $ (100,188) $ 295,962 

On March 28, 2026, the Company entered into an amendment (the "Amendment") to its Asset Purchase and License Agreement with Honeywell International Inc. ("Honeywell"), originally executed in September 2023, for total consideration of $7.8 million, of which $5.3 million is payable in cash. The Amendment expands the scope of rights and extends the expected useful lives of certain underlying assets acquired under the original agreement.

The Company accounted for the Amendment as an asset acquisition, with the consideration allocated to customer-related intangible assets, which is being amortized over a period of 12 years. During the three months ended March 31, 2026, the Company paid $4.0 million of the cash consideration, which is reflected within purchases of intangible assets in the consolidated statements of cash flows. The remaining $1.3 million of cash consideration is included in accrued expenses and other current liabilities on the consolidated balance sheets as of March 31, 2026.

During the three months ended March 31, 2026, the Company reclassified distribution rights with a gross carrying value of $14.6 million and net carrying value of $12.1 million from other assets and prepaid expenses and other current assets to intangible assets. In addition, the Company acquired $12.0 million of distribution rights during the three months ended March 31, 2026, which are being amortized over a period of 15 years.
As of March 31, 2026, the estimated future annual amortization expense related to intangible assets is as follows (in thousands):

Year ending
 Amount
Remainder of 2026 $ 28,040 
2027 35,613 
2028 34,727 
2029 34,663 
2030 34,224 
2031 31,702 
Thereafter 119,840 
Total $ 318,809