Intangible Assets and Goodwill

9 Months Ended

Oct. 02, 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
	Third 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	$	813.0	$	(626.7)	$	186.3	$	804.9	$	(592.3)	$	212.6
Customer relationships	1,156.3		(537.5)		618.8		1,199.6		(491.6)		708.0
Trade names and other intellectual properties	35.0		(32.0)		3.0		35.1		(31.6)		3.5
	$	2,004.3	$	(1,196.2)	$	808.1	$	2,039.6	$	(1,115.5)	$	924.1

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


(In millions)
2026 (Remaining)	$	42.1
2027	159.5
2028	145.4
2029	123.6
2030	87.8
Thereafter	249.7
Total	$	808.1

Goodwill

The changes in the carrying amount of goodwill by segment for the first three 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		4.8		—		211.8
Goodwill impairment	—		—		(562.0)		(562.0)

Foreign currency translation and other adjustments	(12.6)		(7.0)		(47.9)		(67.5)

Balance as of the end of the third quarter of 2026	$	2,231.4	$	975.0	$	1,615.6	$	4,822.0

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.