Goodwill and Other Intangible Assets
The changes in the carrying amounts of goodwill by segment were as follows:
| | | | | | | | | | | | | | | | | |
| EIG | | EMG | | Total |
| (In millions) |
| Balance at December 31, 2023 | $ | 4,365.0 | | | $ | 2,082.6 | | | $ | 6,447.6 | |
| Goodwill acquired | 70.7 | | | — | | | 70.7 | |
| Purchase price allocation adjustments and other | 30.7 | | | 61.7 | | | 92.4 | |
| Foreign currency translation adjustments | (41.5) | | | (13.3) | | | (54.8) | |
| Balance at December 31, 2024 | 4,424.9 | | | 2,131.0 | | | 6,555.9 | |
| Goodwill acquired | 513.1 | | | — | | | 513.1 | |
| Purchase price allocation adjustments and other | 4.5 | | | — | | | 4.5 | |
| Foreign currency translation adjustments | 65.7 | | | 31.6 | | | 97.3 | |
| Balance at December 31, 2025 | $ | 5,008.2 | | | $ | 2,162.6 | | | $ | 7,170.8 | |
Other intangible assets were as follows at December 31:
| | | | | | | | | | | |
| 2025 | | 2024 |
| (In thousands) |
| Definite-lived intangible assets (subject to amortization): | | | |
| Patents | $ | 48,540 | | | $ | 46,043 | |
| Purchased technology | 929,646 | | | 815,088 | |
| Customer lists | 4,149,003 | | | 3,823,907 | |
| 5,127,189 | | | 4,685,038 | |
| Accumulated amortization: | | | |
| Patents | (39,661) | | | (37,977) | |
| Purchased technology | (444,707) | | | (378,102) | |
| Customer lists | (1,617,739) | | | (1,377,094) | |
| (2,102,107) | | | (1,793,173) | |
| Net intangible assets subject to amortization | 3,025,082 | | | 2,891,865 | |
| Indefinite-lived intangible assets (not subject to amortization): | | | |
| Trademarks and trade names | 1,103,312 | | | 1,023,308 | |
| | | |
| | | |
| $ | 4,128,394 | | | $ | 3,915,173 | |
Amortization expense was $277.3 million, $247.7 million, and $215.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Amortization expense for each of the next five years is expected to approximate $277 million per year, not considering the impact of potential future acquisitions.
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.