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Goodwill and Intangible Assets | 9 Months Ended
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Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill In January 2025, the company changed its organizational structure to better align its portfolio of solutions to more effectively address evolving client needs and take further advantage of the synergies across the company’s reportable segments. See Note 15 for additional information on the changes to the company’s operating and reportable segments. These changes did not change the company’s reporting units but were deemed a triggering event, resulting in an interim goodwill analysis on the reporting units impacted as of immediately before and immediately after the change. There were no impairment charges resulting from this analysis. The net carrying value of goodwill by reporting unit was as follows:
|  | Total |  | DWS |  | CA&I |  | ECS |  |
Balance at December 31, 2024 (i) |  | $ | 247.9 |  |  | $ | 101.3 |  |  | $ | 54.5 |  |  | $ | 92.1 |  |  |
Goodwill impairment |  | (55.0) |  |  | (55.0) |  |  | — |  |  | — |  |  |
Translation adjustments |  | 0.9 |  |  | 0.9 |  |  | — |  |  | — |  |  |
Balance at September 30, 2025 |  | $ | 193.8 |  |  | $ | 47.2 |  |  | $ | 54.5 |  |  | $ | 92.1 |  |  |
(i) Cloud, Applications & Infrastructure Solutions (CA&I) and Enterprise Computing Solutions (ECS) reporting units’ goodwill balances were reclassified as of December 31, 2024 to conform with the current period reporting units’ presentation. There was no change to the Digital Workplace Solutions (DWS) goodwill amount. See Note 15 for additional information on the changes to the company’s operating and reportable segments. Goodwill is presented net of accumulated impairment losses of $94.1 million and $39.1 million as of September 30, 2025 and December 31, 2024, respectively, attributable to the DWS reporting unit. For the three and nine months ended September 30, 2025, the company recognized an impairment loss of $55.0 million on goodwill associated with the DWS reporting unit. For the three and nine months ended September 30, 2024, the company recognized an impairment loss of $39.1 million on goodwill associated with the DWS reporting unit. Goodwill Impairment The company reviews goodwill for impairment annually, as well as whenever there are events or changes in circumstances (triggering events), which indicate that the carrying amount may not be recoverable. The company continuously monitors its revenue, gross profit and operating profit growth and evaluates other relevant events and circumstances including changes to U.S. treasury rates and equity risk premiums, tax rates, recent market valuations from transactions by comparable companies, volatility in the company’s market capitalization, and general industry, market and macro-economic conditions, that could unfavorably impact the recoverability of the goodwill carrying value. During the third quarter of 2025, the company reviewed its estimated long term expected future cash flows for the DWS reporting unit as operating results were below estimated forecast due to the impact of the slower pace of client signings driven by industry and macro-economic dynamics. Based on this, the company concluded that a triggering event existed and conducted a quantitative goodwill assessment for its reporting unit as of September 30, 2025. The fair value of the DWS reporting unit was estimated using both the income approach and the market approach using a weighted methodology to determine its fair value. The income approach is a forward-looking approach to estimating fair value and relies primarily on internal forecasts. Within the income approach, the method used is the discounted cash flow method, which is considered a Level 3 nonrecurring fair value measurement. The company starts with a forecast of all expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then applies a reporting unit-specific discount rate to arrive at a net present value amount. Significant estimates and assumptions inherent in this approach include the amount and timing of projected net cash flows, long-term growth rate and the discount rate. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates and operating margins. The discount rate, in turn, is based on various market factors and specific risk characteristics of each reporting unit. The market approach relies primarily on external information for estimating the fair value. Significant estimates and assumptions inherent in this approach include the selection of appropriate guideline companies and the selected performance metric used in this approach. Based on the goodwill impairment analysis performed during the third quarter of 2025, the carrying value of the DWS reporting unit exceeded its respective fair value, resulting in the recognition of a goodwill impairment charge of $55.0 million for the three and nine months ended September 30, 2025. Based on the annual impairment analysis performed during the fourth quarter of 2024, the CA&I reporting unit had a 10% excess of fair value over book value, including goodwill. It is possible that future changes in such circumstances or in the inputs and assumptions used in estimating the fair value of the reporting units could require the company to record an additional non-cash impairment charge. Intangible Assets, Net Intangible assets, net at September 30, 2025, consists of the following:
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Technology |  | $ | 10.0 |  |  | $ | 10.0 |  |  | $ | — |
Customer relationships (i) |  | 54.2 |  |  | 22.0 |  |  | 32.2 |
Marketing (i) |  | 1.3 |  |  | 1.2 |  |  | 0.1 |
Total |  | $ | 65.5 |  |  | $ | 33.2 |  |  | $ | 32.3 |
(i) Amortization expense is included within selling, general and administrative expense in the consolidated statements of income (loss). For the three months ended September 30, 2025 and 2024, amortization expense was $1.1 million and $1.5 million, respectively. For the nine months ended September 30, 2025 and 2024, amortization expense was $3.2 million and $6.1 million, respectively. The future amortization relating to acquired intangible assets at September 30, 2025, was estimated as follows:
|  | Future Amortization Expense
Remainder of 2025 |  | $ | 1.1 |
2026 |  | 4.0 |
2027 |  | 4.0 |
2028 |  | 4.0 |
2029 |  | 4.0 |
Thereafter |  | 15.2 |
Total |  | $ | 32.3 |

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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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