6. GOODWILL AND INTANGIBLE ASSETS
The following table sets forth the changes in the carrying value of goodwill by reportable segment for the periods presented:
 
EES
CSSUBSTotal
(In millions)
Balance as of December 31, 2023
$838.1 $1,211.6 $1,212.6 $3,262.3 
Adjustments to goodwill for acquisitions
4.7 147.2 — 151.9 
Adjustments to goodwill for divestiture
— — (58.1)(58.1)
Foreign currency exchange rate changes(43.5)(11.8)(20.7)(76.0)
Balance as of December 31, 2024
$799.3 $1,347.0 $1,133.8 $3,280.1 
Adjustments to goodwill for acquisitions
20.1 (0.3)— 19.8 
Foreign currency exchange rate changes24.4 7.4 11.7 43.5 
Balance as of December 31, 2025
$843.8 $1,354.1 $1,145.5 $3,343.4 
The components of intangible assets are as follows:
 December 31, 2025December 31, 2024
Life (in years)
Gross Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Amount
Gross Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Amount
 (In millions)
Intangible assets:      
TrademarksIndefinite$791.6 $— $791.6 $789.7 $— $789.7 
Customer relationships
9 - 20
1,523.6 (570.2)953.4 1,502.4 (476.4)1,026.0 
Distribution agreements
8
10.7 (1.3)9.4 29.2 (27.7)1.5 
Trademarks
5 and 12
15.5 (14.0)1.5 15.5 (11.7)3.8 
Software
7
16.0 (3.4)12.6 16.0 (1.1)14.9 
Technology know-how
5
0.9 (0.2)0.7 — — — 
  $2,358.3 $(589.1)$1,769.2 $2,352.8 $(516.9)$1,835.9 
(1)Excludes the original cost and related accumulated amortization of fully-amortized intangible assets.
Amortization expense related to intangible assets totaled $89.1 million, $86.1 million and $88.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table sets forth the remaining estimated amortization expense for intangible assets for the next five years and thereafter:
For the year ending December 31,(In millions)
2026$86.2 
202783.3 
202881.6 
202980.5 
203074.4 
Thereafter571.6 
Total
$977.6 
The Company performed its annual impairment tests of goodwill and indefinite-lived intangible assets during the fourth quarter of 2025 by assessing qualitative factors to determine whether it was more likely than not that the fair values of its reporting units and indefinite-lived intangible assets were less than their respective carrying amounts. As a result of this assessment, the Company determined that it was more likely than not that the fair values of its reporting units and indefinite-lived intangible assets continued to exceed their respective carrying amounts and, therefore, a quantitative impairment test was not necessary.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 25, 2022
2020Mar 1, 2021
2019Feb 24, 2020
2018Feb 27, 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.