DIEBOLD NIXDORF, IncDBD
DIEBOLD NIXDORF, Inc Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS. The Company tests for impairment of all existing goodwill at least annually as of October 1, or more frequently, if necessary. If the Company's qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative impairment test is used to identify potential goodwill impairment and measure the amount of any impairment loss to be recognized. The techniques used in the Company's assessments incorporate a number of assumptions and accounting estimates that the Company believes to be reasonable and to reflect market conditions at the assessment date. Changes in assumptions and estimates after the assessment date may lead to an outcome where impairment charges would be required in future periods. Specifically, actual results may vary from the Company’s forecasts and such variations may be material and unfavorable, thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions. We performed quantitative and qualitative assessments as of October 1, 2024 and 2025, respectively, and no impairment resulted for our Banking and Retail reporting units. As part of this analysis, we evaluated factors including, but not limited to, our market capitalization and stock price performance, macro-economic conditions, market and industry conditions, cost factors, the competitive environment, and the operational stability and overall financial performance of the reporting units. The assessment indicated that it was more likely than not that the fair value of the Banking and Retail reporting units exceeded their respective carrying values. In the fourth quarter of 2025, the Company concluded that no events or changes in circumstances resulted in a situation that would more likely than not reduce the carrying value of our Banking and Retail reporting units. The changes in the carrying amount of goodwill are as follows:
| Banking | Retail | Total | |||||||||||||||
| Goodwill balance at January 1, 2024 | $ | 468.1 | $ | 144.2 | $ | 612.3 | |||||||||||
| Currency translation adjustment | (19.7) | (6.2) | (25.9) | ||||||||||||||
| Balance at December 31, 2024 | $ | 448.4 | $ | 138.0 | $ | 586.4 | |||||||||||
| Currency translation adjustment | 42.5 | 13.5 | 56.0 | ||||||||||||||
| Balance at December 31, 2025 | $ | 490.9 | $ | 151.5 | $ | 642.4 | |||||||||||
Intangible Assets. Where applicable, intangible assets are stated at cost and, if applicable, are amortized ratably over the relevant contract period or the estimated life of the assets. Fees to renew or extend the term of the Company’s intangible assets are expensed when incurred. The following summarizes information on intangible assets by major category:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Weighted-average remaining useful lives | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||
| Customer relationships | 15.2 years | $ | 584.7 | $ | (79.5) | $ | 505.2 | $ | 523.8 | $ | (41.1) | $ | 482.7 | ||||||||||||||||||||||||||||
| Trademarks and trade names | 16.0 years | 123.3 | (16.0) | 107.3 | 114.5 | (8.5) | 106.0 | ||||||||||||||||||||||||||||||||||
| Capitalized software development | 2.0 years | 75.6 | (18.3) | 57.3 | 46.9 | (6.1) | 40.8 | ||||||||||||||||||||||||||||||||||
| Technology know-how, development costs non-software and other | 3.8 years | 240.8 | (118.2) | 122.6 | 224.5 | (75.4) | 149.1 | ||||||||||||||||||||||||||||||||||
| Customer relationships and other intangibles | $ | 1,024.4 | $ | (232.0) | $ | 792.4 | $ | 909.7 | $ | (131.1) | $ | 778.6 | |||||||||||||||||||||||||||||
Costs incurred for the development of external-use software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs are included within other assets and are amortized on a straight-line basis over the estimated useful lives ranging from to five years. Amortization begins when the product is available for general release. Costs capitalized include direct labor and related overhead costs. Costs incurred prior to technological feasibility or after general release are expensed as incurred. The Company performs periodic reviews to ensure that unamortized program costs remain recoverable from future revenue. If future revenue does not support the unamortized program costs, the amount by which the unamortized capitalized cost of a software product exceeds the net realizable value is impaired. The following table identifies the activity relating to total capitalized software development:
| Successor | Predecessor | |||||||||||||||||||||||||
| Year ended December 31, | Period from 08/12/2023 through 12/31/2023 | Period from 01/01/2023 through 08/11/2023 | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Beginning balance | $ | 40.8 | $ | 20.9 | $ | 13.8 | $ | 42.5 | ||||||||||||||||||
| Capitalization | 27.3 | 23.0 | 9.8 | 13.1 | ||||||||||||||||||||||
| Amortization | (11.3) | (3.5) | (1.8) | (12.4) | ||||||||||||||||||||||
| Other | 0.5 | 0.4 | (0.9) | (6.1) | ||||||||||||||||||||||
| Fresh Start Accounting Adjustments | — | — | — | (23.3) | ||||||||||||||||||||||
| Ending balance | $ | 57.3 | $ | 40.8 | $ | 20.9 | $ | 13.8 | ||||||||||||||||||
The Company's total amortization expense, excluding deferred financing costs, was $94.4, $103.7, $42.8 and $59.0 for the Successor Periods for the years ended December 31, 2025 and 2024 and from August 12, 2023 to December 31, 2023, and the Predecessor Period from January 1, 2023 to August 11, 2023, respectively. The expected annual amortization expense is as follows:
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
| Estimated amortization | $ | 89.2 | $ | 89.2 | $ | 89.2 | $ | 77.3 | $ | 41.2 | $ | 406.3 | $ | 792.4 | |||||||||||||||||||||||||||
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.