PITNEY BOWES INC /DE/PBI

PITNEY BOWES INC /DE/ Goodwill & Intangibles Disclosure

10-KFiled Feb 19, 20262 min read
Intangible Assets and Goodwill
Intangible Assets
Intangible assets consisted of the following:
December 31, 2025December 31, 2024
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Customer relationships$32,032 $(18,490)$13,542 $43,569 $(29,179)$14,390 
Software & technology1,230 (31)1,199 2,944 (1,554)1,390 
Total intangible assets, net$33,262 $(18,521)$14,741 $46,513 $(30,733)$15,780 

Amortization expense was $5 million for each of the years ended December 31, 2025, 2024 and 2023.
Future amortization expense for intangible assets at December 31, 2025 is shown in the table below. Actual amortization expense may differ from the amounts above due to fluctuations in foreign currency exchange rates, acquisitions, divestitures and impairment charges.
2026$3,584 
20273,438 
20282,871 
20291,789 
2030939 
Thereafter2,120 
Total$14,741 

Goodwill
Changes in the carrying amount of goodwill by reporting segment are shown in the tables below.
December 31, 2023FX ImpactDecember 31, 2024FX ImpactDecember 31, 2025
SendTech Solutions
510,646 (13,406)$497,240 $25,684 $522,924 
Presort Services
223,763 — 223,763 — 223,763 
Total goodwill$734,409 $(13,406)$721,003 $25,684 $746,687 
During 2023, the performance of our then Global Ecommerce reporting unit, continuing changes in macroeconomic conditions and our long-term outlook for this business were triggering events that caused us to evaluate the Global Ecommerce goodwill for impairment. To assess goodwill for impairment, we determined the fair value of the reporting unit and compared it to the unit's carrying value, including goodwill. We engaged a third party to assist in the determination of the fair value of the reporting unit. The fair value was estimated using a discounted cash flow model based on management developed cash flow projections, which included judgements and assumptions related to revenue growth rates, operating margins, operating income, and a discount rate. The estimates and assumptions were considered Level 3 inputs under the fair value hierarchy. Our assessments indicated that the estimated fair value of the reporting unit was less than its carrying value. Accordingly, a goodwill impairment charge of $124 million was recorded in 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 21, 2025
2023Feb 20, 2024
2022Feb 17, 2023
2021Feb 22, 2022
2020Feb 19, 2021
2019Feb 20, 2020
2018Feb 20, 2019
2017Feb 22, 2018
2016Feb 22, 2017
2015Feb 22, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew Standards