Intangible Assets and Goodwill

6 Months Ended

Jul. 03, 2026

Intangible Asset, Goodwill and Other [Abstract]

NOTE 6. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The following table presents a summary of our intangible assets:


	As of
	Second Quarter of 2026						Year End 2025
	Gross						Gross
	Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
(In millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Developed product technology	$	820.8	$	(617.4)	$	203.4	$	804.9	$	(592.3)	$	212.6
Customer relationships	1,156.2		(512.6)		643.6		1,199.6		(491.6)		708.0
Trade names and other intellectual properties	35.3		(31.9)		3.4		35.1		(31.6)		3.5
	$	2,012.3	$	(1,161.9)	$	850.4	$	2,039.6	$	(1,115.5)	$	924.1

The estimated future amortization expense of intangible assets at the end of the second quarter of 2026 was as follows:


(In millions)
2026 (Remaining)	$	85.5
2027	159.5
2028	145.4
2029	123.7
2030	87.8
Thereafter	248.5
Total	$	850.4

Goodwill

The changes in the carrying amount of goodwill by segment for the first two quarters of 2026 were as follows:


	AECO		Field Systems		T&L		Total
(In millions)
Balance as of year end 2025	$	2,037.0	$	977.2	$	2,225.5	$	5,239.7
Additions due to acquisitions	207.0		—		—		207.0
Goodwill impairment	—		—		(562.0)		(562.0)

Foreign currency translation and other adjustments	(10.5)		(5.4)		(42.2)		(58.1)

Balance as of the end of the second quarter of 2026	$	2,233.5	$	971.8	$	1,621.3	$	4,826.6

Goodwill impairment

During the second quarter of 2026, we identified a triggering event for goodwill impairment testing due to a sustained decline in market capitalization and stock price reflecting heightened macroeconomic uncertainty and lower market multiples for software businesses. As a result, we performed an interim assessment of our goodwill and other long-lived assets and recorded a goodwill impairment of $562.0 million in our T&L reporting unit. The impairment amount represents the excess of the carrying value of the T&L reporting unit over its fair value, which we estimated using a combination of income- and market-based valuation approaches and inputs.