Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of Goodwill were (in millions):


	Intelligent Devices		Software & Control		Lifecycle Services		Total
Balance as of October 1, 2023	$	596	$	2,420	$	513	$	3,529
Acquisition of businesses	283		—		134		417
Translation	21		17		9		47
Balance as of September 30, 2024	$	900	$	2,437	$	656	$	3,993
Impairment	—		—		(161)		(161)

Translation	4		3		—		7
Balance as of September 30, 2025	$	904	$	2,440	$	495	$	3,839

Gross carrying value of Goodwill	$	904	$	2,440	$	814	$	4,158
Accumulated impairment losses	—		—		(319)		(319)
Goodwill	$	904	$	2,440	$	495	$	3,839

We performed our annual evaluation of goodwill and indefinite life intangible assets for impairment during the second quarter of fiscal 2025 and concluded that these assets were not impaired. For our annual evaluation, we performed qualitative tests for our Intelligent Devices, Software & Control, and Lifecycle Services (excluding Sensia) reporting units and a quantitative test for the Sensia reporting unit. Refer to Note 1 for additional information on our goodwill impairment evaluations. See 2025 Impairment Assessment below for additional information on the fourth quarter evaluation.

Other intangible assets consist of (in millions):


	September 30, 2025
	Gross Carrying Value		Accumulated Amortization		Net
Amortized intangible assets
Software products	$	108	$	(83)	$	25
Customer relationships	569		(232)		337
Technology	698		(304)		394
Trademarks	131		(67)		64
Other	6		(6)		—
Total amortized intangible assets	1,512		(692)		820
Allen-Bradley® trademark not subject to amortization	44		—		44
Other intangible assets	$	1,556	$	(692)	$	864


	September 30, 2024
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets
Software products	$	105	$	(76)	$	29
Customer relationships	619		(187)		432
Technology	729		(257)		472
Trademarks	132		(44)		88
Other	6		(5)		1
Total amortized intangible assets	1,591		(569)		1,022
Allen-Bradley® trademark not subject to amortization	44		—		44
Other intangible assets	$	1,635	$	(569)	$	1,066

Software products represent costs of computer software to be sold, leased, or otherwise marketed. Software products amortization expense was $11 million in 2025, $12 million in 2024, and $11 million in 2023. Estimated total amortization expense for all amortized intangible assets is $131 million in 2026, $122 million in 2027, $111 million in 2028, $73 million in 2029, and $71 million in 2030.

2025 Impairment Assessment

As a result of the historical financial performance of the Sensia joint venture not achieving expectations, during the fourth quarter of fiscal 2025, a strategic review by the partners resulted in a decision to pursue an orderly dissolution. This decision to dissolve resulted in downward revisions to growth and profitability projections. The decision by the joint partners to pursue dissolution of the joint venture is a triggering event for impairment testing. For the Sensia reporting unit identifiable intangible assets subject to amortization within the Lifecycle Services operating segment, we believed these changes that occurred during the fourth quarter of 2025 would indicate a potential impairment. The estimated undiscounted future cash flows attributable to the reporting unit were less than the carrying value; therefore, we determined the fair value for Sensia identifiable intangible assets as of September 30, 2025. We engaged an independent third-party valuation specialist to assist with the fair value determination of the identifiable intangible assets, primarily customer relationships, using a multi-period excess earnings model. We compared the fair value of $58 million to the carrying value, which resulted in a pre-tax, non-cash intangible asset impairment charge of $63 million during the fourth quarter of fiscal 2025. Subsequent to the impairment, our consolidated intangible asset balance as of September 30, 2025, is $864 million, including $58 million of identifiable intangible assets within the Sensia reporting unit.

Following the intangible asset impairment analysis, we estimated the fair value of the Sensia reporting unit using an income approach derived from discounted cash flows. As of September 30, 2025, the carrying value of the Sensia reporting unit, after consideration of the fourth quarter intangible asset impairment, was determined to be in excess of the reporting unit’s fair value, resulting in a $161 million pre-tax, non-cash goodwill impairment charge recorded in the Consolidated Statement of Operations. Subsequent to the impairment, our consolidated goodwill balance as of September 30, 2025, is $3,839 million and there is no remaining goodwill within the Sensia reporting unit.

Subsequent to September 30, 2025, and prior to the issuance of these financial statements, the joint venture parents have signed a term sheet that details the distribution of assets and related terms and conditions for the dissolution. As a result, the assets and liabilities to be distributed have met the requirements as held for sale and will be reported as such in our first fiscal quarter. The transaction is expected to close in the first half of fiscal 2026 subject to customary closing conditions.

2023 Impairment Assessment

Following formation in October 2019, the Sensia joint venture operations were challenged by the global pandemic, geopolitical activities, volatility in commodity prices and supply chain dynamics. The cumulative historical growth and profitability below plan had resulted in a declining cushion between carrying value and fair value in previous impairment tests. The joint venture partners appointed a new management team in 2023 and updated the strategy of Sensia, which included downward revisions to growth and profitability projections. Lower sales growth reflected historical performance and an updated outlook of market conditions. Lower profitability reflected an updated view of mix and volume. Based upon the update of Sensia’s strategy and projections in the fourth quarter of 2023, we determined that it was more likely than not that the fair value of Sensia was below its carrying value. As a result of this triggering event, we performed an interim quantitative analysis, using a combination of an income approach derived from discounted cash flows and a market multiples approach using selected comparable public companies, consistent with our annual impairment testing. As of the fourth quarter 2023 testing date, the carrying value of the Sensia reporting unit of $665 million was determined to be in excess of the reporting unit’s fair value, resulting in a $158 million goodwill impairment charge recorded in the Consolidated Statement of Operations. As of September 30, 2024, $161 million of goodwill remained within the Sensia reporting unit.