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Goodwill and Intangible Assets | 6 Months Ended
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Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The net carrying value of goodwill by reporting unit was as follows:
|  | Total |  | DWS |  | CA&I |  | ECS |  |
Balance at December 31, 2025 |  | $ | 193.8 |  |  | $ | 47.2 |  |  | $ | 54.5 |  |  | $ | 92.1 |  |  |
Goodwill impairment |  | (47.2) |  |  | (47.2) |  |  | — |  |  | — |  |  |
Balance at June 30, 2026 |  | $ | 146.6 |  |  | $ | — |  |  | $ | 54.5 |  |  | $ | 92.1 |  |  |
Goodwill is presented net of accumulated impairment losses of $141.3 million and $94.1 million as of June 30, 2026 and December 31, 2025, respectively, attributable to the DWS reporting unit. For the three and six months ended June 30, 2026, the company recognized an impairment loss of $47.2 million on goodwill associated with the DWS reporting unit. The impairment charge was recorded within goodwill and intangible asset impairment in the consolidated statements of income (loss) 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 second quarter of 2026, the company reviewed its estimated long-term expected future cash flows for the DWS reporting unit. DWS projected gross profit was below the previous estimated forecast primarily due to continued competitive pressure resulting from industry and macro-economic conditions. Based on this, the company concluded that a triggering event existed and conducted a quantitative goodwill assessment for DWS reporting unit as of June 30, 2026. 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 discounted cash flow method is used, 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 second quarter of 2026, the carrying value of the DWS reporting unit exceeded its respective fair value, resulting in the recognition of a goodwill impairment charge of $47.2 million for both the three and six months ended June 30, 2026. The impairment charge represented the entire remaining goodwill balance allocated to the DWS reporting unit, resulting in a full write-off of the reporting unit's goodwill. Intangible Assets, Net Intangible assets, net at June 30, 2026, consisted of the following:
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairment Losses |  | Net Carrying Amount
Technology |  | $ | 10.0 |  |  | $ | 10.0 |  |  | $ | — |  |  | $ | — |
Customer relationships (i) |  | 54.2 |  |  | 25.0 |  |  | 1.5 |  |  | 27.7 |
Marketing |  | 1.3 |  |  | 1.3 |  |  | — |  |  | — |
Total |  | $ | 65.5 |  |  | $ | 36.3 |  |  | $ | 1.5 |  |  | $ | 27.7 |
(i) Amortization expense is included within selling, general and administrative expense in the consolidated statements of income (loss). For both the three months ended June 30, 2026 and 2025, amortization expense was $1.0 million. For the six months ended June 30, 2026 and 2025, amortization expense was $2.0 million and $2.1 million, respectively. Finite-lived intangible assets are tested for impairment whenever events or changes in circumstances would indicate that the carrying value may not be recoverable. An impairment charge would be recognized if the carrying value exceeds fair value in the consolidated statement of income (loss) in the period the impairment is identified. During both the three and six months ended June 30, 2026, the company recorded an impairment charge of $1.5 million related to a customer relationship intangible asset. The impairment was triggered by revised expectations regarding future cash flows. Fair value was determined using a discounted cash flow methodology and is classified as a Level 3 fair value measurement. The impairment charge was recorded within goodwill and intangible asset impairment in the consolidated statements of income (loss). The future amortization relating to acquired intangible assets at June 30, 2026, was estimated as follows:
|  | Future Amortization Expense
Remainder of 2026 |  | $ | 1.9 |
2027 |  | 3.7 |
2028 |  | 3.7 |
2029 |  | 3.7 |
2030 |  | 3.7 |
Thereafter |  | 11.0 |
Total |  | $ | 27.7 |

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- Definition The entire disclosure for intangible asset and goodwill. Includes, but is not limited to, finite- and indefinite-lived intangible assets, capitalized cost for internal-use software and software to be sold, leased, or marketed. + 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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