Goodwill and Intangible Assets

6 Months Ended

Jul. 04, 2026

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note C – Goodwill and Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist.

Goodwill of companies acquired, allocated to the company’s reportable segments, is as follows:


		Global
(thousands)		Components			Global ECS			Total
Balance as of December 31, 2025 (a)		$	919,062		$	1,201,009		$	2,120,071
Foreign currency translation adjustment			(4,165)			(6,460)			(10,625)
Balance as of July 4, 2026 (a)		$	914,897		$	1,194,549		$	2,109,446

(a)	The total carrying value of goodwill as of July 4, 2026 and December 31, 2025, in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in Global Components and $301.9 million was recorded in Global ECS.

Intangible assets, net, are comprised of the following as of July 4, 2026:


		Gross
		Carrying			Accumulated
(thousands)		Amount			Amortization			Net
Customer relationships		$	191,229		$	(131,383)		$	59,846
Amortizable trade name			46,017			(38,349)			7,668
		$	237,246		$	(169,732)		$	67,514

Intangible assets, net, are comprised of the following as of December 31, 2025:


		Gross
		Carrying			Accumulated
(thousands)		Amount			Amortization			Net
Customer relationships		$	192,743		$	(125,910)		$	66,833
Amortizable trade name			74,001			(63,812)			10,189
		$	266,744		$	(189,722)		$	77,022

During the second quarter of 2026 and 2025, the company recorded amortization expense related to identifiable intangible assets of $4.8 million and $4.9 million, respectively. During the first six months of 2026 and 2025, amortization expense related to identifiable intangible assets was $9.5 million and $10.2 million, respectively.