Ingersoll Rand Inc.IR
Ingersoll Rand Inc. Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
Goodwill
The changes in the carrying amount of goodwill attributable to each reportable segment for the years ended December 31, 2025 and 2024 are as follows.
| Industrial Technologies and Services | Precision and Science Technologies | Total | |||||||||||||||
Balance as of December 31, 2023 | $ | 4,753.5 | $ | 1,856.2 | $ | 6,609.7 | |||||||||||
| Acquisitions | 263.9 | 1,404.3 | 1,668.2 | ||||||||||||||
Foreign currency translation and other(1) | (86.7) | (43.1) | (129.8) | ||||||||||||||
Balance as of December 31, 2024 | 4,930.7 | 3,217.4 | 8,148.1 | ||||||||||||||
| Acquisitions | 310.1 | 51.3 | 361.4 | ||||||||||||||
| Impairments | — | (229.7) | (229.7) | ||||||||||||||
Foreign currency translation and other(1) | 144.7 | 59.6 | 204.3 | ||||||||||||||
Balance as of December 31, 2025 | $ | 5,385.5 | $ | 3,098.6 | $ | 8,484.1 | |||||||||||
(1)Includes measurement period adjustments.
The Company acquired multiple businesses during the year ended December 31, 2025. The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The allocation of the purchase price is preliminary for certain of these acquisitions and is subject to refinement based on final fair values of the identified assets acquired and liabilities assumed. The goodwill attributable to these businesses is as follows.
2025 Acquisitions | Industrial Technologies and Services | Precision and Science Technologies | Total | |||||||||||||||||
| TMIC/Adicomp | $ | 99.6 | $ | — | $ | 99.6 | ||||||||||||||
| Other acquisitions | 210.5 | 51.3 | 261.8 | |||||||||||||||||
| $ | 310.1 | $ | 51.3 | $ | 361.4 | |||||||||||||||
The Company acquired several businesses during the year ended December 31, 2024. The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The goodwill attributable to these businesses is as follows.
2024 Acquisitions | Industrial Technologies and Services | Precision and Science Technologies | Total | |||||||||||||||||
| ILC Dover | $ | — | $ | 1,309.8 | $ | 1,309.8 | ||||||||||||||
| Friulair | 69.2 | — | 69.2 | |||||||||||||||||
| APSCO | 51.6 | — | 51.6 | |||||||||||||||||
| Other acquisitions | 143.1 | 94.5 | 237.6 | |||||||||||||||||
| $ | 263.9 | $ | 1,404.3 | $ | 1,668.2 | |||||||||||||||
Accumulated impairment losses within the Industrial Technologies and Services segment was $220.6 million as of both December 31, 2025 and 2024. Accumulated impairment losses within the Precision and Science Technologies segment was $229.7 million and $0.0 million as of December 31, 2025 and 2024, respectively.
Goodwill Impairment Tests
During the second quarter of 2025, certain organizational changes occurred that impacted the composition of all reporting units within our Precision and Science Technologies segment. As a result of these changes, the Company performed an interim goodwill impairment test for all affected reporting units, utilizing a combination of an income and market approach weighted 75% and 25%, respectively, to determine the fair value.
In the second quarter of 2025, the Company recognized non-cash impairments of $170.3 million and $59.4 million to reduce the carrying value of goodwill of our Biopharma and Aerospace & Defense reporting units, respectively. Both the Biopharma and Aerospace & Defense reporting units were comprised entirely of businesses acquired in the recent ILC Dover acquisition.
The impairment of the Biopharma reporting unit was primarily attributable to an increase in the discount rate and contraction in market multiples. The impairment of the Aerospace & Defense reporting unit was primarily attributable to a reduction in the long-term forecast associated with a reduction in business with a significant customer of the reporting unit.
Consistent with our accounting policy described in Note 1, we performed our annual goodwill impairment testing as of the first day of our fiscal fourth quarters of 2025, 2024 and 2023. For the years ended December 31, 2025, 2024 and 2023, each reporting unit’s fair value was in excess of its net carrying value, and therefore, no goodwill impairment was recorded other than those discussed above.
Other Intangible Assets
Other intangible assets as of December 31, 2025 and 2024 consisted of the following.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Amortized intangible assets: | |||||||||||||||||||||||||||||||||||
| Customer lists and relationships | $ | 4,292.9 | $ | (2,186.3) | $ | 2,106.6 | $ | 4,010.1 | $ | (1,830.1) | $ | 2,180.0 | |||||||||||||||||||||||
| Technology | 573.5 | (325.2) | 248.3 | 549.1 | (243.3) | 305.8 | |||||||||||||||||||||||||||||
| Tradenames | 327.6 | (53.1) | 274.5 | 63.6 | (32.4) | 31.2 | |||||||||||||||||||||||||||||
| Backlog | — | — | — | 4.3 | (4.2) | 0.1 | |||||||||||||||||||||||||||||
| Other | 163.4 | (125.0) | 38.4 | 128.5 | (112.1) | 16.4 | |||||||||||||||||||||||||||||
| Unamortized intangible assets: | |||||||||||||||||||||||||||||||||||
| Tradenames | 1,572.5 | — | 1,572.5 | 1,839.3 | — | 1,839.3 | |||||||||||||||||||||||||||||
| Total other intangible assets | $ | 6,929.9 | $ | (2,689.6) | $ | 4,240.3 | $ | 6,594.9 | $ | (2,222.1) | $ | 4,372.8 | |||||||||||||||||||||||
Amortization of intangible assets was $387.5 million, $373.0 million and $367.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Amortization of intangible assets is anticipated to be approximately $390 million in 2026, $385 million in 2027, $350 million in 2028, $255 million in 2029 and $220 million in 2030 based upon currency exchange rates as of December 31, 2025.
During the fourth quarter of 2025, the Company reassessed its brand architecture and as a result, certain tradenames with aggregate carrying value of $255.1 million were no longer deemed to have indefinite lives. These tradenames are now being amortized over remaining useful lives ranging from 3 years to 10 years.
Other Intangible Asset Impairment Tests
Consistent with our accounting policy described in Note 1, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate an assets carrying amount may not be recoverable.
During the second quarter of 2025, due to the reduction in the forecast for Aerospace & Defense and the increase in discount rates, the Company quantitatively tested the relevant indefinite lived tradename for which resulted in a non-cash charge of $36.1 million within the Precision and Science Technologies segment.
During the fourth quarter of 2025, the Company rebranded a business resulting in the retirement of a tradename within the Industrial Technologies and Services segment. As a result, the Company recognized an of $7.6 million to reduce the carrying value of the retired tradename.
During the fourth quarter of 2024, the Company decided to rationalize a business within the Precision and Science Technologies segment. As a result, the Company recognized an of $13.9 million to reduce the carrying value of a technology asset.
Annual Intangible Asset Impairment Tests
Consistent with our accounting policy described in Note 1, we performed our annual indefinite-lived intangible asset impairment testing as of the first day of our fiscal fourth quarters of 2025, 2024 and 2023. For the years ended December 31, 2025, 2024 and 2023, each tradename’s fair value was in excess of its net carrying value, and therefore, no impairment was recorded.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 16, 2018 | |
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.