GOODWILL AND INTANGIBLE ASSETS:
The following tables show the carrying amounts of goodwill and intangible assets:
December 31, 2025
Cost
Accumulated
Amortization
and Impairment
Carrying Amount
Goodwill
$388.5 $55.4 $333.1 
Intellectual property
$112.0 $111.5 $0.5 
Other intangible assets
693.9 443.3 250.6 
Computer software assets
314.0 298.9 15.1 
$1,119.9 $853.7 $266.2 
December 31, 2024
Cost
Accumulated
Amortization
and Impairment
Carrying Amount
Goodwill
$395.9 $55.4 $340.5 
Intellectual property
$112.0 $111.4 $0.6 
Other intangible assets
693.9 403.6 290.3 
Computer software assets
313.3 296.2 17.1 
$1,119.2 $811.2 $308.0 

The following table details the changes to the carrying amount of goodwill for the years indicated:
Year ended December 31
20252024
Opening balance
$340.5 $321.7 
Acquisitions through business combinations, foreign exchange and other
(7.4)18.8 
Ending balance
$333.1 $340.5 

At December 31, 2025, our goodwill balance consists of the following:
Reportable SegmentAmount
Capital Equipment reporting unitATS$131.1 
Aerospace and Defense (A&D) reporting unitATS66.3 
PCI Private Limited reporting unitATS123.8 
NCS reporting unitCCS11.9 
$333.1 

We evaluate goodwill for impairment at the reporting unit level annually, and in certain circumstances such as a change in reporting units or whenever there are indications that goodwill might be impaired. No triggering events occurred during 2023, 2024 or 2025. In addition to an assessment of triggering events during the year, we also conduct an Annual Impairment Assessment of goodwill during the fourth quarter of each year. We recorded no impairment charges against goodwill or intangible assets as a result of our 2023, 2024 or 2025 Annual Impairment Assessments because the fair value of each one of the reporting units exceeded its respective carrying value.

Other intangible assets are amortized over a weighted-average estimated useful life of 12.2 years. Computer software assets are amortized over a weighted-average estimated useful life of 8.0 years. Estimated amortization expenses of intangible assets for each of the five succeeding fiscal years and thereafter are as follows:

2026$44.1 
202742.3
202837.8
202936.3
203036.3
Thereafter69.4
$266.2 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025

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.