The Company’s policy is to assess goodwill and indefinite-lived intangible assets for impairment annually as of April 1, with more frequent assessments if events or changes in circumstances indicate a given asset might be impaired. For the April 1, 2026 annual goodwill impairment assessment, the Company performed a qualitative assessment for Essential Dental Solutions and Wellspect Healthcare, the two reporting units with goodwill balances. Based on the totality of the factors considered, the Company concluded that the fair value of each reporting unit was expected to exceed its carrying amount and no goodwill impairment charges were recognized.

Indefinite-lived intangible assets were assessed either through a computation of fair value using an income approach, specifically a relief from royalty method for acquired trade names and trademarks, or through a qualitative assessment for in-process research and development (“R&D”). The Company’s significant assumptions in the relief from royalty method include, but were not limited to, discount rates (ranging from 12% to 16%), revenue growth rates (including perpetual growth rates) and royalty rates, all of which were determined using the judgment of management. These assumptions for indefinite-lived intangible asset tests were developed in consideration of current market conditions and future expectations which include, but are not limited to, impact from competition and new product developments. Based on these assessments, the Company concluded that the fair values of its indefinite-lived intangible assets exceeded their respective carrying values, and therefore no impairment charges were recognized as a result of the annual impairment testing performed as of April 1, 2026.

There is a risk of future impairment charges if there is a decline in the fair value of the reporting units or indefinite-lived intangible assets as a result of, among other things, actual financial results that are lower than forecasts, an adverse change in valuation assumptions, a decline in equity valuations, increases in interest rates, or changes in the use of intangible assets. There can be no assurance that the Company’s future asset impairment testing will not result in a material charge to earnings.


(in millions)	Connected Technology Solutions		Essential Dental Solutions		Orthodontic and Implant Solutions		Wellspect Healthcare		Total






















Balance at December 31, 2025
Goodwill	$	291	$	860	$	1,298	$	288	$	2,737
Accumulated impairment losses	(291)		—		(1,298)		—		(1,589)
Goodwill, net at December 31, 2025	—		860		—		288		1,148
Translation	—		(6)		—		(4)		(10)
Impairment	—		—		—		—		—
Goodwill, net at June 30, 2026	$	—	$	854	$	—	$	284	$	1,138

Accumulated impairment losses at June 30, 2026	(291)		—		(1,298)		—		(1,589)


	June 30, 2026						December 31, 2025
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Developed technology and patents	$	1,749	$	(1,359)	$	390	$	1,783	$	(1,334)	$	449
Trade names and trademarks	83		(78)		5		84		(79)		5
Licensing agreements	40		(27)		13		42		(29)		13
Customer relationships	1,082		(868)		214		1,098		(847)		251
Total definite-lived	2,954		(2,332)		622		3,007		(2,289)		718

Indefinite-lived trade names and trademarks	$	243	$	—	$	243	$	251	$	—	$	251
In-process R&D	5		—		5		5		—		5
Total indefinite-lived	248		—		248		256		—		256

Total identifiable intangible assets	$	3,202	$	(2,332)	$	870	$	3,263	$	(2,289)	$	974

During the second quarter of 2026, following updates to the Company’s technology strategy made during the quarter, management reassessed the remaining useful life of the developed technology intangible asset associated with the Byte acquisition. Based on the expected migration of certain functionality to the DS Core platform, management concluded that the remaining period over which the asset is expected to provide economic benefit had shortened. Accordingly, the Company revised the asset’s remaining useful life, and its remaining carrying value is being amortized through February 2028. The revision was accounted for prospectively as a change in accounting estimate and increased amortization expense by approximately $14 million during the quarter ended June 30, 2026.