7. Goodwill and Other Intangible Assets
Goodwill
The following provides the balance and changes of goodwill:
| | | | | | | | | | | |
| December 31, |
| (In millions) | 2025 | | 2024 |
| Balance at January 1 | $ | 4,063 | | | $ | 4,065 | |
| Effect of foreign currency translation | 9 | | | (2) | |
| Balance at December 31 | $ | 4,072 | | | $ | 4,063 | |
We performed our annual goodwill impairment test as of October 1, 2025 and did not identify any impairment.
Other Intangible Assets
Other intangible assets are included in other assets on the consolidated balance sheets and primarily consist of distribution channels and trade name and exclude VOBA. See additional information and disclosures on VOBA in Note 8 – Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired.
The following details our other intangible assets:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| (In millions) | Gross carrying amount | | Accumulated amortization | | Net carrying amount | | Gross carrying amount | | Accumulated amortization | | Net carrying amount |
| Distribution channels | $ | 1,870 | | | $ | 416 | | | $ | 1,454 | | | $ | 1,870 | | | $ | 311 | | | $ | 1,559 | |
| Trade name | 160 | | | 32 | | | 128 | | | 160 | | | 24 | | | 136 | |
| Other intangibles | 100 | | | 41 | | | 59 | | | 60 | | | 39 | | | 21 | |
| Total other intangible assets | $ | 2,130 | | | $ | 489 | | | $ | 1,641 | | | $ | 2,090 | | | $ | 374 | | | $ | 1,716 | |
Amortization expense for other intangible assets was $115 million, $117 million and $120 million for the years ended December 31, 2025, 2024 and 2023, respectively. The expected amortization expense of other intangible assets for the next five years is as follows:
| | | | | |
| (In millions) | Expected Amortization |
| 2026 | $ | 117 | |
| 2027 | 120 | |
| 2028 | 120 | |
| 2029 | 120 | |
| 2030 | 120 | |
We evaluate indefinite-lived intangible assets for impairment at least annually, or more frequently if indicators of impairment exist. No impairment losses were recognized for other intangible assets during the years ended December 31, 2025, 2024 and 2023.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.