GOODWILL, SOFTWARE AND OTHER INTANGIBLE ASSETS, NET
Changes in goodwill for the years ended December 31, 2025 and 2024 are as follows:
(in millions)Amount
Balance at December 31, 2023$462 
Impairment(1)
Balance at December 31, 2024$461 
Additions (Impairment) 
Balance at December 31, 2025$461 
As part of our 2024 restructuring discussed in Note 16, we classified approximately $7 million of assets and an immaterial amount of liabilities as held for sale and compared the carrying value of those assets to their estimated fair value, which was based on their estimated selling price. The assets and liabilities were sold in 2025. This resulted in a $1 million goodwill impairment for 2024.
The following summarizes software and other intangible assets:
December 31, 2025December 31, 2024
(in millions)Weighted Average Amortization PeriodGross Carrying AmountAccumulated AmortizationImpairment
Loss
Net
Carrying Amount
Gross Carrying AmountAccumulated AmortizationImpairment
Loss
Net Carrying Amount
Amortizable
intangibles:
Software4 years448 (315)— 133 423 (303)— 120 
Customer
relationships
3 years40 (18)(22) 45 (20)(24)
Developed
technology
6 years56 (36)— 20 65 (30)— 35 
Total$544 $(369)$(22)$153 $533 $(353)$(24)$156 
Amortization of intangible assets during the years ended December 31, 2025, 2024 and 2023 was $61 million, $68 million and $63 million, respectively. We evaluate the remaining useful life of intangible assets annually to determine whether events and circumstances warrant a revision to the estimated remaining useful life. In 2024, in connection with our restructuring discussed in Note 16, we recognized an impairment charge of $24 million related to customer relationships assets, which was classified in G&A in our Consolidated statement of income and comprehensive income. This impairment charge was determined using a discounted cash flows model and Level 3
fair value inputs related to the expected attrition rate of the cohort of clients acquired in previous business combinations. There were no impairment charges recognized for the years ended December 31, 2025 and 2023.
The following table summarizes our capitalized internally developed software costs and related depreciation expense.
 Year Ended December 31,
(in millions)202520242023
Capitalized internally developed software costs63 78 69 
Depreciation expense for capitalized internally developed software costs52 48 42 
Expense related to intangibles amortization in future periods as of December 31, 2025 is expected to be as follows:
Year ending December 31:Amount
(in millions)
2026$55 
202742 
202824 
202917 
203010 
2031 and thereafter3 
Total$151 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2021Feb 14, 2022
2020Feb 16, 2021
2019Feb 13, 2020

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.