Company: ARRY
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001820721-25-000095
Chunk: 119

Company: Array Technologies, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 three months ended September 30, 2025 and 2024, respectively, of which $0.8 million and $0.7 million, respectively, was included in Cost of product and service revenue and $0.8 million and $0.6 million, respectively, was included in Depreciation and amortization on the accompanying condensed consolidated statements of operations.Depreciation expense was $3.8 million and $3.3 million for the nine months ended September 30, 2025 and 2024, respectively, of which $2.0 million and $1.6 million, respectively, was included in Cost of product and service revenue and $1.8 million and $1.7 million, respectively, was included in Depreciation and amortization on the accompanying condensed consolidated statements of operations.

6.    Goodwill and Other Intangible Assets, Net 

Goodwill Changes in the carrying amount of goodwill by operating segment during the nine months ended September 30, 2025, consisted of the following (in thousands):Array Legacy Operations STI OperationsTotal Beginning balance$69,727 $90,462 $160,189 Acquisition72,911 — 72,911 Foreign currency translation— 12,115 12,115 Ending balance (1)$142,638 $102,577 $245,215 (1) Goodwill attributable to Array Legacy Operations is net of cumulative impairments of $51.9 million. Goodwill attributable to STI Operations is net of cumulative impairments of $236.0 million.As discussed in Note 3 - Acquisition, on the Closing Date, the Company acquired APA. A preliminary goodwill balance of $72.9 million was recognized for the excess of the consideration transferred over the net assets acquired. Goodwill resulting from this transaction has not yet been allocated at the reporting unit level. Goodwill will be allocated to the appropriate reporting unit during the measurement period once the Company has completed its analysis of the impact of the acquisition on its reporting units.

20

The Company tests goodwill for impairment annually, or more frequently if facts and circumstances indicate that it is more likely than not that the fair value of its reporting units is less than their carrying value, which would require the Company to perform an interim goodwill impairment test. There were no indicators of impairment as of September 30, 2025.During the three months ended September 30, 2024, the Company identified indicators of impairment