GOODWILL AND OTHER INTANGIBLES
 
The changes in the carrying value of goodwill by reportable segment are as follows:
 
PGIMInternational
Businesses
Corporate and Other
OtherTotal
 (in millions)
Goodwill balance, December 31, 2022:$549 $115 $202 $10 $876 
Acquisitions(1)373 373 
Impairments(2)(177)(177)
Divestitures(3)
(23)(23)
Foreign currency translation30 (7)(1)22 
Goodwill balance, December 31, 2023:952 108 10 1,071 
Foreign currency translation and other(6)(12)(18)
Goodwill balance, December 31, 2024:946 96 10 1,053 
Foreign currency translation and other
47 (1)(10)37 
Goodwill balance, December 31, 2025:$993 $97 $$$1,090 
__________
(1)During 2023, PGIM acquired a majority stake in Deerpath Capital Management, LP, a leading U.S.-based private credit and direct lending manager. The goodwill associated with that acquisition includes a measurement period adjustment made during 2024.
(2)Corporate and Other includes the impairment of the remaining goodwill allocated with Assurance IQ.
(3)Corporate and Other includes a sale of a foreign operation classified as a divested business.

The Company tests goodwill for impairment annually, as of December 31, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2. The Company performed the annual goodwill impairment test using the quantitative approach for its reporting units at December 31, 2025. The estimated fair values of both PGIM and International Businesses incorporated a market approach based on an earnings multiple and exceeded their carrying values, resulting in no goodwill impairment as of December 31, 2025.

Other Intangibles

Other intangible balances at December 31, are as follows:
 
 20252024
 Gross Carrying AmountAccumulated
Amortization
Net Carrying AmountGross Carrying AmountAccumulated
Amortization
Net Carrying Amount
 (in millions)
Subject to amortization:
Mortgage servicing rights$918 $(650)$268 $897 $(630)$267 
Customer relationships271 (197)74 260 (173)87 
Software and other35 (26)41 (30)11 
Not subject to amortization39 N/A39 41 N/A41 
Total$390 $406 
 
The fair values of net mortgage servicing rights were $271 million and $269 million at December 31, 2025 and 2024, respectively. Amortization expense for other intangibles was $73 million, $80 million and $89 million for the years ending December 31, 2025, 2024 and 2023, respectively. The amortization expense amounts for 2025, 2024 and 2023 do not include impairments recorded for mortgage servicing rights or other intangibles. See the nonrecurring fair value measurements section of Note 6 for additional information regarding these impairments.
The following table provides estimated future amortization for the periods indicated:

20262027202820292030
(in millions)
Estimated future amortization expense of other intangibles$69 $62 $56 $40 $32 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 21, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 19, 2021
2019Feb 14, 2020
2018Feb 15, 2019
2017Feb 16, 2018
2016Feb 17, 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.