Goodwill and Other Intangible AssetsThe carrying value of goodwill by segment was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Application Software | | Network Software | | Technology Enabled Products | | | | Total |
| Balances at December 31, 2023 | $ | 12,563.4 | | | $ | 3,624.6 | | | $ | 930.8 | | | | | $ | 17,118.8 | |
| Goodwill acquired | 2,167.6 | | | 87.8 | | | — | | | | | 2,255.4 | |
| Currency translation adjustments | (11.0) | | | (6.0) | | | (1.9) | | | | | (18.9) | |
| Reclassifications and other | (42.4) | | | — | | | — | | | | | (42.4) | |
| Balances at December 31, 2024 | $ | 14,677.6 | | | $ | 3,706.4 | | | $ | 928.9 | | | | | $ | 19,312.9 | |
| Goodwill acquired | 1,247.4 | | | 702.9 | | | 73.5 | | | | | 2,023.8 | |
| Currency translation adjustments | 28.9 | | | 14.9 | | | 1.2 | | | | | 45.0 | |
| Reclassifications and other | (36.7) | | | (4.1) | | | 0.3 | | | | | (40.5) | |
| Balances at December 31, 2025 | $ | 15,917.2 | | | $ | 4,420.1 | | | $ | 1,003.9 | | | | | $ | 21,341.2 | |
Reclassifications and other relates to purchase accounting adjustments for completed acquisitions, composed primarily of purchase accounting adjustments that decrease goodwill and deferred tax liabilities, for both the years ended December 31, 2025 and 2024, respectively.
Other intangible assets were comprised of:
| | | | | | | | | | | | | | | | | |
| | Cost | | Accumulated amortization | | Net book value |
| Assets subject to amortization: | | | | | |
| Customer related intangibles | $ | 11,303.7 | | | $ | (3,457.0) | | | $ | 7,846.7 | |
| Unpatented technology | 851.7 | | | (454.7) | | | 397.0 | |
| | | | | |
| Patents and other protective rights | 9.2 | | | (1.9) | | | 7.3 | |
| | | | | |
| Assets not subject to amortization: | | | | | |
| Trade names | 808.6 | | | — | | | 808.6 | |
| Balances at December 31, 2024 | $ | 12,973.2 | | | $ | (3,913.6) | | | $ | 9,059.6 | |
| | | | | |
| Assets subject to amortization: | | | | | |
| Customer related intangibles | $ | 12,301.5 | | | $ | (3,894.6) | | | $ | 8,406.9 | |
| Unpatented technology | 880.3 | | | (425.6) | | | 454.7 | |
| | | | | |
| Patents and other protective rights | 9.1 | | | (2.3) | | | 6.8 | |
| | | | | |
| Assets not subject to amortization: | | | | | |
| Trade names | 895.8 | | | — | | | 895.8 | |
| Balances at December 31, 2025 | $ | 14,086.7 | | | $ | (4,322.5) | | | $ | 9,764.2 | |
Amortization expense of other intangible assets was $815.4, $745.2, and $698.4 during the years ended December 31, 2025, 2024, and 2023, respectively. Amortization expense is expected to be $833.0 in 2026, $791.0 in 2027, $751.0 in 2028, $680.0 in 2029, and $671.0 in 2030.
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.