Intangible assets and goodwill
A.Intangible assets
 
Intangible assets were comprised of the following:
 
 December 31, 2025
(Millions of dollars)
Gross Carrying Amount1
Accumulated
Amortization1
Net
Customer relationships$2,012 $(1,877)$135 
Intellectual property479 (399)80 
Other117 (91)26 
Total finite-lived intangible assets$2,608 $(2,367)$241 
 December 31, 2024
Gross Carrying AmountAccumulated
Amortization
Net
Customer relationships$2,220 $(1,950)$270 
Intellectual property496 (401)95 
Other117 (83)34 
Total finite-lived intangible assets$2,833 $(2,434)$399 
1 For the year ended December 31, 2025, $248 million of intangible assets were fully amortized and have been removed.
 
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.

Amortization expense related to intangible assets was $169 million, $176 million and $218 million for 2025, 2024 and 2023, respectively.

As of December 31, 2025, amortization expense related to intangible assets is expected to be: 

(Millions of dollars)
20262027202820292030Thereafter
$98$35$27$24$21$36
 
B.Goodwill
 
There were no goodwill impairments during 2025, 2024 or 2023.
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 were as follows:

(Millions of dollars)December 31, 2024
Other Adjustments 1
December 31, 2025
Construction Industries
Goodwill$261 $3 $264 
Impairments(22) (22)
Net goodwill239 3 242 
Resource Industries
Goodwill4,124 37 4,161 
Impairments(1,175) (1,175)
Net goodwill2,949 37 2,986 
Power & Energy
Goodwill2,939 40 2,979 
Impairment(925) (925)
Net goodwill2,014 40 2,054 
All Other 2
Goodwill39  39 
Consolidated total
Goodwill7,363 80 7,443 
Impairments(2,122) (2,122)
Net goodwill$5,241 $80 $5,321 
December 31, 2023
Other Adjustments 1
December 31, 2024
Construction Industries
Goodwill$277 $(16)$261 
Impairments(22)— (22)
Net goodwill255 (16)239 
Resource Industries
Goodwill4,151 (27)4,124 
Impairments(1,175)— (1,175)
Net goodwill2,976 (27)2,949 
Power & Energy
Goodwill2,959 (20)2,939 
Impairment(925)— (925)
Net goodwill2,034 (20)2,014 
All Other 2
Goodwill43 (4)39 
Consolidated total
Goodwill7,430 (67)7,363 
Impairments(2,122)— (2,122)
Net goodwill$5,308 $(67)$5,241 
1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other Segment (See Note 23).

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 15, 2023
2021Feb 16, 2022
2020Feb 17, 2021
2019Feb 19, 2020
2018Feb 14, 2019
2017Feb 15, 2018
2016Feb 15, 2017
2015Feb 16, 2016

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.