GENERAL DYNAMICS CORPGD

GENERAL DYNAMICS CORP Goodwill & Intangibles Disclosure

10-KFiled Jan 30, 20262 min read
GOODWILL AND INTANGIBLE ASSETS
Goodwill. The changes in the carrying amount of goodwill by reporting unit were as follows:
AerospaceMarine SystemsCombat SystemsTechnologiesTotal Goodwill
December 31, 2023 (a)
$3,199 $297 $2,812 $14,278 $20,586 
Acquisitions (b)9 — 39 158 206 
Other (c)(123)— (93)(20)(236)
December 31, 2024 (a)
3,085 297 2,758 14,416 20,556 
Acquisitions (b)20 — 2 92 114 
Other (c)259 — 65 15 339 
December 31, 2025 (a)
$3,364 $297 $2,825 $14,523 $21,009 
(a)Goodwill in the Technologies reporting unit was net of $1.8 billion of accumulated impairment losses.
(b)Included adjustments during the purchase price allocation period.
(c)Consisted primarily of adjustments for foreign currency translation.
Intangible Assets. Intangible assets consisted of the following:
Gross Carrying Amount (a)Accumulated AmortizationNet Carrying AmountGross Carrying Amount (a)Accumulated AmortizationNet Carrying Amount
December 3120252024
Contract and program intangible assets (b)$3,241 $(2,119)$1,122 $3,278 $(1,989)$1,289 
Trade names and trademarks575 (345)230 511 (289)222 
Technology and software77 (54)23 61 (52)9 
Other intangible assets60 (60)— 60 (60)— 
Total intangible assets$3,953 $(2,578)$1,375 $3,910 $(2,390)$1,520 
(a)Changes in gross carrying amounts consisted primarily of foreign currency translation and adjustments for divested intangible assets.
(b)Consisted of acquired backlog and probable follow-on work and associated customer relationships.
We did not recognize any impairments of our intangible assets during the last three years. The amortization lives (in years) of our intangible assets on December 31, 2025, were as follows:
Intangible AssetRange of Amortization Life
Contract and program intangible assets
7-30
Trade names and trademarks30
Technology and software
7-15
Other intangible assets7
Amortization expense is included in operating costs and expenses in the Consolidated Statement of Earnings. Amortization expense for intangible assets was $174 in 2025, $180 in 2024 and $194 in 2023. We expect to record annual amortization expense over the next five years as follows:
Year Ended December 31Amortization Expense
2026$175 
2027169 
2028147 
2029131 
2030121 
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Historical Timeline

Fiscal YearFiled
2025Jan 30, 2026Showing above
2024Feb 7, 2025
2023Feb 8, 2024
2022Feb 7, 2023
2021Feb 9, 2022
2020Feb 9, 2021
2019Feb 10, 2020
2018Feb 13, 2019
2017Feb 12, 2018
2016Feb 6, 2017
2015Feb 8, 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.

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