Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill is calculated as the excess of consideration transferred over the net assets recognized for acquired businesses and represents future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized. Goodwill is assigned to reporting units at the date the goodwill is initially recorded and is reallocated as necessary based on the composition of reporting units over time.

The Company assesses goodwill for impairment at the reporting unit level annually on the first day of the fourth quarter and upon the occurrence of a triggering event or change in circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

A quantitative test performed upon the occurrence of a triggering event compares the fair value of a reporting unit with its carrying amount. The Company determines fair values for each of the reporting units, as applicable, using the market approach, when available and appropriate, or the income approach, or a combination of both. The Company assesses the valuation methodology based upon the relevance and availability of the data at the time the Company performs the valuation. If multiple valuation methodologies are used, the results are weighted appropriately.

Valuations using the market approach are derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. A market approach is limited to reporting units for which there are publicly traded companies that have characteristics similar to the Company's businesses.

Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on our most recent views of the long-term outlook for each business. Actual results may differ from those assumed in the forecasts. The Company derives its discount rates using a capital asset pricing model and by analyzing published rates for industries relevant to its reporting units to estimate the cost of equity financing. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in our internally developed forecasts.

Fiscal year ended December 31, 2025

The Company performed its annual impairment assessment as of October 1, 2025, for its five reporting units. The Company performed a qualitative (Step 0) assessment for four reporting units and concluded that it was more likely than not that the fair values of the reporting units exceeded their carrying values. Therefore, the Company was not required to perform a quantitative analysis. The Company elected to perform a quantitative (Step 1) analysis for its North America reporting unit primarily due to financial performance versus plan and the results of prior quantitative tests performed. Additionally, the Company assesses factors that may impact its business, including macroeconomic conditions. For the quantitative assessment, the fair value of the North America reporting unit was determined using both a discounted cash flow methodology and a market approach methodology with peer company multiples. Under the discounted cash flow methodology, the present value of expected future cash flows utilized a discount rate of 10.5%. The discounted cash flow used a terminal future cash flows growth rate of 3.5%. The Company also compared fair value to peer company multiples. The Company's quantitative impairment assessment in 2025 for the North America reporting unit indicated fair value was in excess of its carrying value.

Fiscal year ended December 31, 2024

The Company performed its annual impairment assessment as of October 1, 2024, for its five reporting units. For the assessment, the fair values of the reporting units were determined using both a discounted cash flow methodology and a market approach methodology with peer company multiples. Under the discounted cash flow methodology, the present value of expected future cash flows utilized discount rates ranging from 10% to 13%. The discounted cash flow used a terminal future cash flows growth rate of 3.5% for all reporting units. The Company also compared fair value to peer company multiples.

The Company's quantitative impairment assessment in 2024 for all reporting units indicated fair values were in excess of their carrying values. The results of this assessment indicated that only the DSD reporting unit had a fair value less than 20% in excess over carrying value, but the excess was improved as compared to the October 1, 2023 assessment.

Fiscal year ended December 31, 2023

The Company performed its annual impairment assessment as of October 1, 2023, for its five reporting units. For the assessment, the fair values of the reporting units were determined using both a discounted cash flow methodology and a market approach methodology with peer company multiples. Under the discounted cash flow methodology, the present value of expected future cash flows utilized discount rates ranging from 12% to 14%. The discounted cash flow used a terminal future cash flows growth rate of 3.5% for all reporting units. The Company also compared fair value to peer company multiples.

The Company's quantitative impairment assessment in 2023 for all reporting units indicated fair values were in excess of their carrying values. The results of this assessment indicated that the DSD, Nuclear & Safety Europe and Asia and Nuclear & Safety North America reporting units had a fair value less than 20% in excess over carrying value, primarily due to the impairments recorded in the prior period and an increased discount rate utilized in the current year discounted cash flows.

The following table shows changes in the carrying amount of goodwill by reportable segment as of December 31, 2025, December 31, 2024, and December 31, 2023 (in millions):


	Medical		Nuclear & Safety		Consolidated
Balance—December 31, 2023	$	633.4	$	814.2	$	1,447.6
Measurement period adjustment	1.3		—		1.3
Translation adjustment	—		(22.0)		(22.0)
Other	(0.7)		—		(0.7)
Balance—December 31, 2024	634.0		792.2		1,426.2
Acquisition of Certrec	—		55.7		55.7
Acquisition of Paragon	—		343.7		343.7
Translation adjustment	—		46.8		46.8
Balance—December 31, 2025	$	634.0	$	1,238.4	$	1,872.4

A portion of goodwill is deductible for income tax purposes.

Gross carrying amounts and cumulative goodwill impairment losses are as follows (in millions):


	December 31, 2025				December 31, 2024
	Gross Carrying Amount		Cumulative Impairment		Gross Carrying Amount		Cumulative Impairment
Goodwill	$	2,084.2	$	(211.8)	$	1,638.0	$	(211.8)

Intangible Assets

Intangible assets consist of our developed technology, customer relationships, remaining performance obligations and trade names at the time of acquisition through business combinations. The customer relationships definite lived intangible assets are amortized either using the double declining balance method or on a straight-line basis, while all other definite lived intangible assets are amortized on a straight-line basis over their estimated useful lives.

Many of our intangible assets are not deductible for income tax purposes. A summary of intangible assets useful lives, gross carrying value and related accumulated amortization is below (in millions):


		December 31, 2025
	Original Average Life in Years	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	6 - 13	$	524.6	$	(240.5)	$	284.1
Distributor relationships	7 - 13	61.2		(30.6)		30.6
Developed technology	5 - 16	345.0		(140.1)		204.9
Trade names	3 - 10	115.8		(43.1)		72.7
Remaining performance obligations and other	1 - 4	15.1		(1.1)		14.0
Total		$	1,061.7	$	(455.4)	$	606.3

		December 31, 2024
	Original Average Life in Years	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Customer relationships	6 - 13	$	335.6	$	(190.9)	$	144.7
Distributor relationships	7 - 13	60.8		(23.2)		37.6
Developed technology	5 - 16	258.7		(100.2)		158.5
Trade names	3 - 10	97.8		(31.5)		66.3
Remaining performance obligations and other	1 - 4	23.3		(18.8)		4.5
Total		$	776.2	$	(364.6)	$	411.6

Aggregate amortization expense for intangible assets included in cost of revenues and operating expenses was as follows (in millions):


	Fiscal Year Ended December 31, 2025		Fiscal Year Ended December 31, 2024		Fiscal Year Ended December 31, 2023
Amortization expense for intangible assets in:
Cost of revenues	$	27.6	$	27.0	$	27.1
Operating expenses	$	74.8	$	91.5	$	104.2

Estimated future annual amortization expense is as follows (in millions):


Fiscal year ending December 31:
2026	$	118.0
2027	103.2
2028	85.4
2029	69.1
2030	61.5
2031 and thereafter	169.1
Total	$	606.3