BELDEN INC.BDC
BELDEN INC. Goodwill & Intangibles Disclosure
Intangible Assets
The carrying values of intangible assets were as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
| Goodwill | $ | 1,036,821 | $ | — | $ | 1,036,821 | $ | 1,018,677 | $ | — | $ | 1,018,677 | |||||||||||||||||||||||
| Definite-lived intangible assets subject to amortization: | |||||||||||||||||||||||||||||||||||
| Developed technology | $ | 388,914 | $ | (287,587) | $ | 101,327 | $ | 341,303 | $ | (247,904) | $ | 93,399 | |||||||||||||||||||||||
| Customer relationships | 462,792 | (190,069) | 272,723 | 454,298 | (164,279) | 290,019 | |||||||||||||||||||||||||||||
| Trademarks | 75,005 | (52,517) | 22,488 | 72,804 | (41,733) | 31,071 | |||||||||||||||||||||||||||||
| Backlog | 15,319 | (15,261) | 58 | 14,170 | (13,705) | 465 | |||||||||||||||||||||||||||||
| In-service research and development | 5,000 | (5,000) | — | 5,000 | (5,000) | — | |||||||||||||||||||||||||||||
| Non-compete agreements | 5,355 | (2,152) | 3,203 | 5,265 | (1,145) | 4,120 | |||||||||||||||||||||||||||||
| Total intangible assets subject to amortization | $ | 952,385 | $ | (552,586) | $ | 399,799 | $ | 892,840 | $ | (473,766) | $ | 419,074 | |||||||||||||||||||||||
Segment Allocation of Goodwill
The changes in the carrying amount of goodwill assigned to reporting units in our reportable segments are as follows:
| Smart Infrastructure Solutions | Automation Solutions | Consolidated | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Balance at December 31, 2023 | $ | 511,524 | $ | 395,807 | $ | 907,331 | |||||||||||
| Acquisitions | 120,962 | 2,620 | 123,582 | ||||||||||||||
Translation impact | (3,128) | (9,108) | (12,236) | ||||||||||||||
| Balance at December 31, 2024 | $ | 629,358 | $ | 389,319 | $ | 1,018,677 | |||||||||||
| Acquisition adjustments | (6,976) | (320) | (7,296) | ||||||||||||||
| Translation impact | 7,025 | 18,415 | 25,440 | ||||||||||||||
| Balance at December 31, 2025 | $ | 629,407 | $ | 407,414 | $ | 1,036,821 | |||||||||||
Annual Impairment Test
The annual measurement date for our goodwill impairment test is our fiscal November month-end. For our 2025 goodwill impairment test, we performed a quantitative assessment for one of our reporting units and determined the estimated fair value by calculating the present value of estimated future cash flows using Level 3 inputs. We determined that the fair value for the reporting unit was in excess of its carrying value. We performed a qualitative assessment for the remaining five reporting units and determined that it was more likely than not that the fair value of each reporting unit was greater than its respective carrying value. Therefore, we did not record any goodwill impairment in 2025. We also did not recognize any goodwill impairment in 2024 or 2023.
For our quantitative impairment test in 2025, the fair value of the reporting unit was 15% over its carrying value. The assumptions used to estimate fair value were based on the past performance of the reporting unit as well as the projections incorporated in our strategic plan. Significant assumptions included sales growth, profitability, and related cash flows, along with cash flows associated with taxes and capital spending. The discount rate used to estimate fair value was risk adjusted in consideration of the economic conditions in effect at the time of the impairment test. We also considered assumptions that market participants may use. In our assessment, the discount rate was 13.6%, the 2026 to 2035 compounded annual revenue growth rate was 5.9%, and the revenue growth rate beyond 2035 was 3.0%. By their nature, these assumptions involve risks and uncertainties. There is inherent risk associated with using an income approach to estimate fair value. If actual results are significantly different from our estimates or assumptions, we may have to recognize impairment charges that could be material.
Amortization Expense
We recognized amortization expense of $65.6 million, $59.4 million, and $48.1 million in 2025, 2024, and 2023, respectively. We expect to recognize annual amortization expense of $60.2 million in 2026, $56.7 million in 2027, $50.7 million in 2028, $37.9 million in 2029, and $30.1 million in 2030 related to our intangible assets balance as of December 31, 2025.
The weighted-average amortization period for our customer relationships, developed technology, trademarks, non-compete agreements, and backlog is 19.3 years, 7.2 years, 6.8 years, 5.0 years, and 5.0 years, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 11, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 25, 2016 | |
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.