Other Intangible AssetsThe following table presents the detail of acquired intangible assets other than goodwill as of December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Amortization Period | | Gross Cost | | Accumulated Amortization | | Net Book Value |
| Customer relationships | | 15 years | | $ | 100,300 | | | $ | (18,946) | | | $ | 81,354 | |
| Developed technology | | 10 years | | 77,000 | | | (21,817) | | | 55,183 | |
| Tradename | | 10 years | | 16,000 | | | (4,533) | | | 11,467 | |
| Backlog | | 3 months | | 7,000 | | | (7,000) | | | — | |
| Total | | | | $ | 200,300 | | | $ | (52,296) | | | $ | 148,004 | |
All intangible assets are amortized over their estimated useful lives. The weighted average remaining amortization period for identifiable intangible assets acquired is 9.8 years. Amortization expense recognized during the twelve months ended December 31, 2025 was $16.0 million and was recorded in SG&A expenses in the consolidated statements of income. Estimated future amortization expense is as follows:
| | | | | | | | |
| 2026 | | 15,987 | |
| 2027 | | 15,987 | |
| 2028 | | 15,987 | |
| 2029 | | 15,987 | |
| 2030 | | 15,987 | |
| Thereafter | | 68,069 | |
| Total | | $ | 148,004 | |
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.