Goodwill and Other Intangible Assets
The following table details the changes in the carrying amount of goodwill:
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Balances at December 31, 2023
Goodwill$2,843 $1,604 $306 $$4,760 
Accumulated impairment losses(719)(4)(2)— (725)
Goodwill, net2,124 1,600 304 4,035 
Translation and other(17)(7)(1)— (25)
Balances at December 31, 2024
Goodwill2,826 1,597 305 4,735 
Accumulated impairment losses(719)(4)(2)— (725)
Goodwill, net2,107 1,593 303 4,010 
Translation and other31 17 — — 48 
Balances at December 31, 2025
Goodwill2,857 1,614 305 4,783 
Assets held for sale reclassification (A)
— — — — (36)
Accumulated impairment losses(719)(4)(2)— (725)
Goodwill, net$2,138 $1,610 $303 $$4,022 
During the 2025 annual review of goodwill in the fourth quarter, management performed quantitative assessments on the Fastening Systems and Engineered Structures reporting units and qualitative assessments on the Engine Products and Forged Wheels reporting units. The estimated fair values of the reporting units exceeded their respective carrying values in excess of 80%; thus, there were no goodwill impairments. Howmet uses a DCF model to estimate the current fair value of the reporting unit, which is compared to its carrying value, when testing for impairment. Management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales growth, production costs, and discount rate. Assumptions can vary among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The WACC rate for the individual reporting units is estimated with the assistance of valuation experts. The annual goodwill impairment tests in the fourth quarters of 2025, 2024, and 2023 indicated that goodwill was not impaired for any of the Company’s reporting units. If actual results or external market factors decline significantly from management’s estimates, future goodwill impairment charges (or the amount by which the carrying amount exceeds the reporting unit’s fair value without exceeding the total amount of goodwill allocated to that reporting unit) may be necessary and could be material.
Other intangible assets were as follows:
December 31, 2025
Gross carrying amountAccumulated
amortization
Intangibles, net
Computer software$221 $(187)$34 
Patents and licenses66 (66)— 
Other intangibles671 (270)401 
Total amortizable intangible assets958 (523)435 
Indefinite-lived trade names and trademarks22 — 22 
Total intangible assets, net$980 $(523)$457 
December 31, 2024
Gross carrying amountAccumulated
amortization
Intangibles, net
Computer software$217 $(185)$32 
Patents and licenses66 (66)— 
Other intangibles689 (268)421 
Total amortizable intangible assets972 (519)453 
Indefinite-lived trade names and trademarks22 — 22 
Total intangible assets, net$994 $(519)$475 
Computer software consists primarily of software costs associated with enterprise business solutions across Howmet's businesses.
Amortization expense related to the intangible assets recorded in Provision for depreciation and amortization in the Statement of Consolidated Operations was $32, $33, and $35 for the years ended December 31, 2025, 2024, and 2023, respectively, and is expected to be in the range of approximately $30 to $36 annually from 2026 to 2030, excluding the impacts of potential acquisitions.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 14, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 14, 2022
2020Feb 16, 2021
2019Feb 27, 2020
2018Feb 21, 2019
2017Feb 26, 2018
2016Feb 28, 2017
2015Feb 19, 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.