XML 32 R15.htm IDEA: XBRL DOCUMENT v3.25.4
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure Goodwill and Intangible Assets
On September 30, 2025, the Company reorganized its organizational structure to better reflect how the Company manages its business and goes to market, to simplify reporting and to provide clearer visibility into performance trends across its service offerings. See Note 18 of the Notes included herein for additional information.
In accordance with ASC 350-20, Intangibles—Goodwill and Other: Goodwill, when changes occur in the composition of reporting units, the Company is required to reallocate goodwill to the affected reporting units using a relative fair value approach and perform goodwill impairment testing for impacted reporting units both immediately before and after the reorganization. As part of the reorganization, goodwill was reallocated using the income approach, which incorporated the use of the DCF method. The Company performed the required goodwill impairment assessments as of the date of the reorganization and during its annual impairment testing on October 1, 2025. The assessment indicated that the estimated fair value of each impacted reporting unit exceeded its carrying amount both immediately prior to and immediately subsequent to the reallocation of goodwill. Accordingly, no goodwill impairment was recognized. The Company recast the carrying amount of goodwill to align with the new segment structure for comparative purpose.
The following table presents the Company’s recast of goodwill as reported on the Consolidated Balance Sheets as of December 31:
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
Balance at December 31, 2023$501,076 $303,263 $416,052 $229,475 $48,949 $1,498,815 
Acquired goodwill13,845 — 368 23,520 38,175 75,908 
Disposition— — — — (7,699)(7,699)
Foreign currency translation(7,015)— (2,660)(2,516)35 (12,156)
Other (1)
9 (731)— — — (722)
Balance at December 31, 2024$507,915 $302,532 $413,760 $250,479 $79,460 $1,554,146 
Acquired goodwill11,881 6,184 — — — 18,065 
Disposition(5,684)— — — — (5,684)
Foreign currency translation10,849 1 6,678 2,433 4,395 24,356 
Other (1)
— — — 266 4,089 4,355 
Balance at December 31, 2025$524,961 $308,717 $420,438 $253,178 $87,944 $1,595,238 
(1) Includes adjustments associated with the finalization of purchase price accounting for acquisitions.
The following presents the Company’s gross and net amounts of intangible assets other than goodwill as reported on the Consolidated Balance Sheets as of December 31:
Intangible Assets20252024
Customer relationships, gross
$960,667 $939,227 
Accumulated amortization(380,115)(293,581)
Customer relationships, net$580,552 $645,646 
Trade names, gross$215,500 208,549 
Accumulated amortization(112,192)(94,687)
Trade names, net$103,308 $113,862 
Capitalized software, gross$206,280 $104,017 
Accumulated amortization(85,540)(49,597)
Capitalized software, net$120,740 $54,420 
Developed technology and other, gross$54,688 $37,890 
Accumulated amortization(25,040)(15,035)
Developed technology and other, net$29,648 $22,855 
Total intangible assets, gross$1,437,135 $1,289,683 
Accumulated amortization(602,887)(452,900)
Total intangible assets, net$834,248 $836,783 
The weighted average amortization period for customer relationships is fourteen years, trade names is twelve years, capitalized software is three years, and developed technology and other intangible assets is four years. In total, the weighted average amortization period is thirteen years. Amortization expense related to amortizable intangible assets for the years ended December 31, 2025, 2024, and 2023 was $145.4 million, $121.6 million, and $112.2 million, respectively.
The estimated amortization expense for the five succeeding years is as follows:
YearAmortization
2026$148,450 
2027138,301 
2028113,073 
202992,389 
203070,244 
Thereafter271,791 
Total
$834,248