Goodwill and Intangible Assets
Goodwill
The following information presents changes to goodwill during the periods indicated:
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| Automation & Motion Control | | Industrial Powertrain Solutions | | Power Efficiency Solutions | | Total | | | |
| Balance as of December 31, 2023 | $ | 2,052.2 | | | $ | 3,747.0 | | | $ | 753.9 | | | $ | 6,553.1 | | | | |
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| Acquisitions | 0.7 | | | (5.8) | | | — | | | (5.1) | | | | |
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| Translation and Other | (40.4) | | | (44.0) | | | (4.7) | | | (89.1) | | | | |
| Balance as of December 31, 2024 | $ | 2,012.5 | | | $ | 3,697.2 | | | $ | 749.2 | | | $ | 6,458.9 | | | | |
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| Translation and Other | 66.2 | | | 78.2 | | | 8.0 | | | 152.4 | | | | |
| Balance as of December 31, 2025 | $ | 2,078.7 | | | $ | 3,775.4 | | | $ | 757.2 | | | $ | 6,611.3 | | | | |
| Cumulative Goodwill Impairment Charges | $ | 5.1 | | | $ | 18.1 | | | $ | 200.4 | | | $ | 223.6 | | | | |
Intangible Assets
Intangible assets consist of the following:
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| | | December 31, 2025 | | December 31, 2024 |
| Weighted Average Amortization Period (Years) | | Gross Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Amount | | Accumulated Amortization | | Net Carrying Amount |
| Customer Relationships | 15 | | $ | 3,993.6 | | | $ | 1,188.7 | | | $ | 2,804.9 | | | $ | 3,892.8 | | | $ | 915.1 | | | $ | 2,977.7 | |
| Technology | 13 | | 300.2 | | | 131.5 | | | 168.7 | | | 293.0 | | | 109.0 | | | 184.0 | |
| Trademarks | 10 | | 719.1 | | | 274.3 | | | 444.8 | | | 692.3 | | | 189.4 | | | 502.9 | |
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| Total Intangibles | | | $ | 5,012.9 | | | $ | 1,594.5 | | | $ | 3,418.4 | | | $ | 4,878.1 | | | $ | 1,213.5 | | | $ | 3,664.6 | |
While the Company believes its customer relationships are long-term in nature, the Company's contractual customer relationships are generally short-term. Useful lives are established at acquisition based on historical attrition rates.
Amortization expense was $346.1 million in 2025, $346.5 million in 2024 and $307.8 million in 2023.
The following table presents estimated future amortization expense:
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| Year | | Estimated Amortization |
| 2026 | | $ | 342.2 | |
| 2027 | | 342.2 | |
| 2028 | | 336.6 | |
| 2029 | | 329.5 | |
| 2030 | | 327.4 | |
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.