DIGITAL REALTY TRUST, INC. Goodwill & Intangibles Disclosure
9. Goodwill
Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired in a business combination. Changes in the value of goodwill at December 31, 2024 as compared to December 31, 2023 were primarily driven by changes in exchange rates associated with goodwill balances denominated in foreign currencies.
The following is a summary of goodwill activity for the years ended December 31, 2024 and 2023 (in thousands):
Balance as of | Impact of Change | Balance as of | |||||||||||||
December 31, | Goodwill | in Foreign | December 31, | ||||||||||||
Merger / Portfolio Acquisition |
| 2023 |
| Acquisition |
| Adjustments |
| Exchange Rates |
| 2024 | |||||
Telx Acquisition | $ | 330,845 | $ | — | $ | — | $ | — | $ | 330,845 | |||||
European Portfolio Acquisition |
| 429,510 |
| — |
| — |
|
| (14,533) |
| 414,977 | ||||
DFT Merger |
| 2,592,147 |
| — |
| — |
|
| — |
| 2,592,147 | ||||
Interxion Combination | 4,411,857 | 598 | — | (259,139) | 4,153,316 | ||||||||||
Teraco Combination | 1,462,994 | — | — | (37,366) | 1,425,628 | ||||||||||
Other Combination | 12,518 | — | — | — | 12,518 | ||||||||||
Total | $ | 9,239,871 | $ | 598 | $ | — | $ | (311,038) | $ | 8,929,431 | |||||
Balance as of | Impact of Change | Balance as of | |||||||||||||
December 31, | Goodwill | in Foreign | December 31, | ||||||||||||
Merger / Portfolio Acquisition | 2022 |
| Acquisition |
| Adjustments |
| Exchange Rates |
| 2023 | ||||||
Telx Acquisition | $ | 330,845 | $ | — | $ | — | $ | — | $ | 330,845 | |||||
European Portfolio Acquisition |
| 408,055 |
| — |
| 3,011 |
|
| 18,444 |
| 429,510 | ||||
DFT Merger | 2,592,147 | — | — |
|
| — | 2,592,147 | ||||||||
Interxion Combination | 4,288,208 | — | 4,843 | 118,806 | 4,411,857 | ||||||||||
Teraco Combination |
| 1,576,704 |
| — |
| — | (113,710) |
| 1,462,994 | ||||||
Other Combination | 12,538 | — | (20) | — | 12,518 | ||||||||||
Total | $ | 9,208,497 | $ | — | $ | 7,834 | $ | 23,540 | $ | 9,239,871 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 25, 2025 | Showing above |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 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.