Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 3: GOODWILL AND INTANGIBLE ASSETS

Goodwill. Changes in our goodwill balances for the year ended December 31, 2023 were as follows:

(dollars in millions)	Balance as of December 31, 2022		Acquisitions and Divestitures		Foreign currency translation and other		Balance as of December 31, 2023
Collins Aerospace	$	32,846	$	(3)	$	292	$	33,135
Pratt & Whitney	1,563		—		—		1,563
Raytheon (1)	19,414		(430)		—		18,984
Total Segments	53,823		(433)		292		53,682
Eliminations and other	17		—		—		17
Total	$	53,840	$	(433)	$	292	$	53,699

(1)     The $430 million reduction in Acquisition and Divestitures reflects the reclassification of goodwill to held for sale assets as a result of our definitive agreement to sell our CIS business. See “Note 2: Acquisitions and Dispositions” for additional information.

The Company reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired.

Effective July 1, 2023, we implemented a new organizational structure resulting in a change from four principal business segments to three principal business segments. As a result, we reassigned goodwill and customer relationship intangibles to our new segment structure. Goodwill was reassigned on a relative fair value basis, and we tested goodwill related to the impacted reporting units immediately before and after the reassignment and determined that no impairment existed.

We completed our annual goodwill impairment testing as of October 1, 2023 and determined that no adjustments to the carrying value of goodwill were necessary. We assessed all of our reporting units using qualitative factors to determine whether it was more likely than not that any individual reporting unit’s fair value is less than its carrying value (step 0) and determined that no further testing was required.

Intangible Assets. Identifiable intangible assets are comprised of the following:

	2023				2022
(dollars in millions)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized:
Collaboration assets	$	5,810	$	(1,688)	$	5,536	$	(1,408)
Exclusivity assets	3,460		(352)		2,911		(323)
Developed technology and other	1,219		(635)		1,202		(544)
Customer relationships	29,605		(10,683)		29,775		(8,967)
	40,094		(13,358)		39,424		(11,242)
Indefinite-lived:
Trademarks and other	8,663		—		8,641		—
Total	$	48,757	$	(13,358)	$	48,065	$	(11,242)

We also completed our annual indefinite-lived intangible assets impairment testing as of October 1, 2023 and determined that no adjustments to the carrying value of these assets were necessary.

Amortization of intangible assets was $2,085 million, $1,957 million, and $2,439 million in 2023, 2022, and 2021, respectively. The following is the expected amortization of intangible assets for 2024 through 2028:

(dollars in millions)	2024	2025	2026	2027	2028
Amortization expense	$2,193	$2,079	$2,005	$1,887	$1,811