GOODWILL AND OTHER INTANGIBLE ASSETS
Commercial Engines & ServicesDefense & Propulsion TechnologiesTotal
Balance at December 31, 2023
$6,472 $2,476 $8,948 
Goodwill impairment— (251)(251)
Goodwill adjustments(a)
(131)(28)(159)
Balance at December 31, 2024
$6,341 $2,197 $8,538 
Goodwill acquisition— 148 148 
Goodwill adjustments(a)
303 72 374 
Balance at December 31, 2025
$6,644 $2,417 $9,060 
(a) Goodwill adjustments are primarily related to foreign currency exchange.

In the fourth quarter of 2025, we performed our annual impairment test. Based on the results of this test, the fair values of each of our reporting units exceeded their carrying values.

20252024
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31
Useful lives
(in years)
Gross carrying
amount
Accumulated
amortization
NetGross carrying
amount
Accumulated
amortization
Net
Customer-related(a)
5-20
$3,992 $(2,313)$1,679 $3,850 $(2,083)$1,767 
Patents and technology
5-15
2,946 (916)2,031 2,744 (759)1,985 
Capitalized software
5-10
1,366 (859)507 1,296 (803)493 
Trademarks & other
13
77 (67)70 (58)13 
Total$8,380 $(4,155)$4,225 $7,960 $(3,703)$4,257 
(a) Balance includes payments made to our customers, primarily within our Commercial Engines & Services segment.
Intangible assets decreased $32 million in 2025, primarily as a result of amortization, offset by acquisitions within our Defense & Propulsion Technologies segment, additions of capitalized software and foreign currency exchange. Consolidated amortization expense was $357 million, $350 million and $382 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Estimated consolidated annual pre-tax amortization for intangible assets over the next five calendar years are as follows:

ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION20262027202820292030
Estimated annual pre-tax amortization351356357376371

During 2025, we recorded additions to intangible assets subject to amortization of $266 million with a weighted-average amortizable period of 12.47 years, including capitalized software of $119 million, with a weighted-average amortizable period of 7 years.

Historical Timeline

Fiscal YearFiled
2025Jan 29, 2026Showing above
2024Feb 3, 2025
2023Feb 2, 2024
2020Feb 12, 2021
2019Feb 24, 2020
2018Feb 26, 2019
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 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.