BENTLEY SYSTEMS INCBSY

BENTLEY SYSTEMS INC Goodwill & Intangibles Disclosure

10-KFiled Feb 26, 20263 min read
Goodwill and Other Intangible Assets
The Company’s intangible assets primarily arise from acquisitions and principally consist of goodwill, acquired software and technology, customer relationships, and trademarks. Finite-lived intangible assets are amortized on a straight‑line basis over their estimated useful lives.
Goodwill
The changes in the carrying amount of goodwill are as follows:
Balance, December 31, 2023$2,269,336 
Acquisitions120,214 
Foreign currency translation adjustments(21,538)
Other adjustments(833)
Balance, December 31, 20242,367,179 
Acquisitions69,232 
Foreign currency translation adjustments45,064 
Other adjustments679 
Balance, December 31, 2025$2,482,154 
Goodwill consists of the excess of cost over the fair value of net assets acquired in business combinations. Goodwill is not amortized, but instead is tested annually for impairment on October 1, or more frequently if events occur or circumstances change that would more likely than not reduce its fair value below its carrying amount. The Company allocates goodwill to reporting units on a relative fair value basis.
In testing for goodwill impairment, the Company may first qualitatively assess whether it is more likely than not (a likelihood of more than 50 percent) that a goodwill impairment exists. If it is determined that a quantitative assessment is required and the carrying amount exceeds its fair value, the Company will recognize goodwill impairment in the amount in which the carrying amount of the reporting unit exceeds its fair value, but not to exceed the carrying amount of goodwill within the reporting unit. There was no impairment of goodwill as a result of the Company’s annual impairment assessments conducted for the years ended December 31, 2025, 2024, or 2023.
Other Intangible Assets
Details of intangible assets other than goodwill are as follows:
Remaining Weighted Average Useful Life
as of December 31, 2025		December 31, 2025December 31, 2024
Gross
Carrying
Amount		Accumulated
Amortization		Net Book
Value		Gross
Carrying
Amount		Accumulated
Amortization		Net Book
Value
Intangible assets subject to amortization:
Software and technology
2.3 years
$88,183 $(70,058)$18,125 $86,578 $(61,671)$24,907 
Customer relationships
5.4 years
332,959 (189,838)143,121 315,773 (162,175)153,598 
Trademarks
5.8 years
77,764 (45,992)31,772 74,034 (38,593)35,441 
Non-compete agreementsN/A— — — 350 (337)13 
Total intangible assets$498,906 $(305,888)$193,018 $476,735 $(262,776)$213,959 
The aggregate amortization expense for purchased intangible assets with finite lives is included in the consolidated statements of operations as follows:
Year Ended December 31,
202520242023
Cost of subscriptions and licenses$12,890 $12,681 $12,704 
Amortization of purchased intangibles32,768 33,998 38,515 
Total amortization expense$45,658 $46,679 $51,219 
Amortization expense for purchased intangible assets with finite lives for the years after December 31, 2025 are estimated as follows:
2026$43,138 
202736,075 
202834,575 
202931,089 
203029,371 
Thereafter18,770 
$193,018 
The Company evaluates intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that useful lives of those assets are no longer appropriate. If circumstances require an asset to be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset to its carrying value. If the carrying value of the asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. There was no impairment of intangible assets subject to amortization for the years ended December 31, 2025, 2024, or 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 26, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Mar 2, 2021

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.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&ELeasesSegmentsCommitmentsNew Standards