Note 5 — Goodwill and Acquired Intangible Assets

During fiscal years 2026 and 2025, the Company’s goodwill remained flat.

Goodwill by segment as of March 31, 2026 and 2025 was as follows:

 

 

 

As of
March 31, 2026

 

 

As of
March 31, 2025

 

 

 

(In thousands)

 

Communication services

 

$

1,584,603

 

 

$

1,582,083

 

Defense and advanced technologies

 

 

40,410

 

 

 

40,049

 

Total

 

$

1,625,013

 

 

$

1,622,132

 

Acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to 12 years (which approximates the economic pattern of benefit). Amortization expense related to acquired intangible assets was $260.7 million, $263.9 million and $227.2 million for fiscal years 2026, 2025 and 2024, respectively.

Acquired intangible assets and the related accumulated amortization as of March 31, 2026 and 2025 were as follows:

 

 

 

 

 

 

As of March 31, 2026

 

 

As of March 31, 2025

 

 

 

Weighted
Average
Useful Life

 

 

Total

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Total

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

 

(In years)

 

 

(In thousands)

 

Contracts and customer relationships

 

 

11

 

 

$

1,432,934

 

 

$

(413,945

)

 

$

1,018,989

 

 

$

1,432,562

 

 

$

(280,309

)

 

$

1,152,253

 

Orbital slots and spectrum assets

 

 

12

 

 

 

1,088,600

 

 

 

(263,600

)

 

 

825,000

 

 

 

1,088,600

 

 

 

(173,600

)

 

 

915,000

 

Technology

 

 

7

 

 

 

223,954

 

 

 

(142,147

)

 

 

81,807

 

 

 

247,921

 

 

 

(131,805

)

 

 

116,116

 

Trade names

 

 

8

 

 

 

114,570

 

 

 

(50,811

)

 

 

63,759

 

 

 

116,949

 

 

 

(38,453

)

 

 

78,496

 

Other

 

 

9

 

 

 

18,995

 

 

 

(11,114

)

 

 

7,881

 

 

 

18,017

 

 

 

(9,105

)

 

 

8,912

 

Total other acquired intangible assets

 

 

11

 

 

$

2,879,053

 

 

$

(881,617

)

 

$

1,997,436

 

 

$

2,904,049

 

 

$

(633,272

)

 

$

2,270,777

 

 

The expected amortization expense of amortizable acquired intangible assets may change due to the effects of foreign currency fluctuations as a result of international businesses acquired. Expected amortization expense for acquired intangible assets for each of the following periods is as follows:

 

 

Amortization

 

 

 

(In thousands)

 

Expected for fiscal year 2027

 

$

263,329

 

Expected for fiscal year 2028

 

 

263,291

 

Expected for fiscal year 2029

 

 

262,266

 

Expected for fiscal year 2030

 

 

247,160

 

Expected for fiscal year 2031

 

 

234,951

 

Thereafter

 

 

726,439

 

 

$

1,997,436

 

Historical Timeline

Fiscal YearFiled
2026May 29, 2026Showing above
2025May 27, 2025
2024May 29, 2024
2023May 22, 2023
2022May 31, 2022
2021May 28, 2021
2020May 29, 2020
2019May 29, 2019
2018May 30, 2018
2017May 25, 2017
2016May 26, 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.