v3.25.4

Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The Company has approximately $1.6 billion of goodwill and $455 million of identified intangible assets at December 31, 2025. Goodwill is identified by segment as follows (in millions):
|  | Energy Products and Services |  |  | Energy Equipment |  |  | Total |
Balance at December 31, 2023 |  | $ | 746 |  |  | $ | 816 |  |  | $ | 1,562 |
Goodwill acquired during period |  |  | 70 |  |  |  | — |  |  |  | 70 |
Adjustment during the measurement period of assets acquired |  |  | (2 | ) |  |  | — |  |  |  | (2 | )
Balance at December 31, 2024 |  | $ | 814 |  |  | $ | 816 |  |  | $ | 1,630 |
Adjustment during the measurement period of assets acquired |  |  | (11 | ) |  |  | — |  |  |  | (11 | )
Reclassification between segments |  |  | (2 | ) |  |  | 2 |  |  |  | — |
Impairment |  |  | — |  |  |  | (40 | ) |  |  | (40 | )
Currency translation adjustments and other |  |  | 4 |  |  |  | (1 | ) |  |  | 3 |
Balance at December 31, 2025 (1) |  | $ | 805 |  |  | $ | 777 |  |  | $ | 1,582 |
(1) Accumulated goodwill impairment was $7,301 million as of December 31, 2025. Identified intangible assets with determinable lives consist primarily of customer relationships, trademarks, trade names, patents, and technical drawings acquired in acquisitions, and are being amortized in a manner consistent with the underlying cash flows over the estimated useful lives of 2-40 years. Amortization expense of identified intangibles is expected to be approximately $51 million, $47 million, $39 million, $28 million, and $24 million for the next five years. The net book values of identified intangible assets are identified by segment as follows (in millions):
|  | Energy Products and Services |  |  | Energy Equipment |  |  | Total |
Balance at December 31, 2023 |  | $ | 299 |  |  | $ | 151 |  |  | $ | 450 |
Additions to intangible assets |  |  | 1 |  |  |  | 6 |  |  |  | 7 |
Intangible assets acquired |  |  | 102 |  |  |  | — |  |  |  | 102 |
Amortization |  |  | (28 | ) |  |  | (21 | ) |  |  | (49 | )
Currency translation adjustments and other |  |  | — |  |  |  | (2 | ) |  |  | (2 | )
Balance at December 31, 2024 |  | $ | 374 |  |  | $ | 134 |  |  | $ | 508 |
Additions to intangible assets |  |  | 1 |  |  |  | 5 |  |  |  | 6 |
Adjustment during the measurement period of assets acquired |  |  | 11 |  |  |  | — |  |  |  | 11 |
Reclassification between segments |  |  | (32 | ) |  |  | 32 |  |  |  | — |
Write-offs |  |  | — |  |  |  | (18 | ) |  |  | (18 | )
Amortization |  |  | (33 | ) |  |  | (22 | ) |  |  | (55 | )
Currency translation adjustments and other |  |  | — |  |  |  | 3 |  |  |  | 3 |
Balance at December 31, 2025 |  | $ | 321 |  |  | $ | 134 |  |  | $ | 455 |
Identified intangible assets by major classification consist of the following (in millions):
|  | Gross |  |  | Accumulated Amortization |  |  | Net Book Value |
December 31, 2024: |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 531 |  |  | $ | (388 | ) |  | $ | 143 |
Trademarks |  |  | 194 |  |  |  | (139 | ) |  |  | 55 |
Patents |  |  | 153 |  |  |  | (85 | ) |  |  | 68 |
Indefinite-lived trade names |  |  | 196 |  |  |  | — |  |  |  | 196 |
Other |  |  | 125 |  |  |  | (79 | ) |  |  | 46 |
Total identified intangibles |  | $ | 1,199 |  |  | $ | (691 | ) |  | $ | 508 |
December 31, 2025: |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 546 |  |  | $ | (414 | ) |  | $ | 132 |
Trademarks |  |  | 180 |  |  |  | (137 | ) |  |  | 43 |
Patents |  |  | 128 |  |  |  | (81 | ) |  |  | 47 |
Indefinite-lived trade names |  |  | 196 |  |  |  | — |  |  |  | 196 |
Other |  |  | 126 |  |  |  | (89 | ) |  |  | 37 |
Total identified intangibles |  | $ | 1,176 |  |  | $ | (721 | ) |  | $ | 455 |
Goodwill represents the excess of acquisition price paid over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently whenever events or circumstances indicate they might be impaired. The Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit or indefinite lived intangible asset is greater than its carrying amount. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting or indefinite lived intangible asset is greater than its carrying amount, no further testing is required. However, if the Company concludes otherwise, then it is required to perform a quantitative assessment. For the year ended December 31, 2025, the Company elected to bypass the qualitative assessment and proceed directly to a quantitative goodwill impairment test for each reporting unit. When the Company performs a quantitative assessment, it compares the reporting unit’s carrying value to the respective fair value. Fair value of the reporting unit is determined using significant unobservable inputs, or level 3 in the fair value hierarchy. These inputs are based on internal management estimates, forecasts and judgments, using discounted cash flow. The discounted cash flow is based on management’s forecast of operating performance for the reporting unit. The two main assumptions used in measuring goodwill impairment, which bear the risk of change and could impact the Company’s goodwill impairment analysis, include the cash flows from operations from each reporting unit and its weighted average cost of capital. The starting point for each of the reporting unit’s cash flows from operations is the detailed annual plan or updated forecast. Cash flows beyond the updated forecasted operating plans are estimated using a terminal value calculation, which incorporates historical and forecasted financial cyclical trends for each reporting unit and considered long-term earnings growth rates. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate. During times of volatility, significant judgment must be applied to determine whether credit changes are a short-term or long-term trend. The quantitative analysis for indefinite lived intangible assets is performed similarly using an income approach. Management reviews finite-lived intangibles for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the finite-lived intangibles are estimated over the intangible asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the finite-lived intangible asset may not be recoverable, the potential impairment is measured at fair value. During the fourth quarter of 2025, the Company perform ed its annual impairment test, as described in ASC Topic 350, as of October 1, 2025. Based on the results of the assessment, the Company concluded that the estimated fair value of its Renewables reporting unit was below its carrying amount. As a result, the Company recorded a goodwill impairment charge of $40 million related to the Renewables reporting unit during the year ended December 31, 2025. The goodwill impairment charge was recognized within “Goodwill and long-lived asset impairment” in the Consolidated Statements of Income. Following the impairment, the Renewables reporting unit has no remaining goodwill balance. No goodwill impairment was identified for the Company’s other reporting units as part of the annual impairment test performed as of October 1, 2025. However, the estimated fair values of certain reporting units were not significantly in excess of their respective carrying amounts (excess fair value of 15%), and these reporting units had an aggregate goodwill balance of approximately $313 million as of December 31, 2025. A deterioration in market conditions, adverse changes in operating performance, or an increase in the Company’s cost of capital could result in future goodwill impairment charges for one or more of these reporting units. In addition, the Company completed its annual impairment test of its indefinite-lived intangible assets as of October 1, 2025. Based on the results of this assessment, the Company concluded that the estimated fair values of its indefinite-lived intangible assets exceeded their respective carrying amounts, and accordingly, no impairment charges were recorded for indefinite-lived intangible assets during the year ended December 31, 2025.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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