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Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible assets and goodwill
A.Intangible assets
 
Intangible assets were comprised of the following:
 
 December 31, 2024
(Millions of dollars)Gross Carrying AmountAccumulated
Amortization		Net
Customer relationships$2,220 $(1,950)$270 
Intellectual property496 (401)95 
Other117 (83)34 
Total finite-lived intangible assets$2,833 $(2,434)$399 
 December 31, 2023
Gross Carrying AmountAccumulated
Amortization		Net
Customer relationships$2,232 $(1,814)$418 
Intellectual property484 (380)104 
Other117 (75)42 
Total finite-lived intangible assets$2,833 $(2,269)$564 
 
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.

Amortization expense related to intangible assets was $176 million, $218 million and $284 million for 2024, 2023 and 2022, respectively.

As of December 31, 2024, amortization expense related to intangible assets is expected to be: 

(Millions of dollars)
20252026202720282029Thereafter
$166$96$33$26$23$55
 
B.Goodwill
 
There were no goodwill impairments during 2024 or 2023.

Our annual impairment tests completed in the fourth quarter of 2022 indicated the fair value of each reporting unit was substantially above its respective carrying value, including goodwill, with the exception of our Rail reporting unit.

The Rail reporting unit is a part of our Energy & Transportation segment. Rail’s product portfolio includes diesel-electric locomotives and other rail-related products and services. The annual impairment test completed in the fourth quarter of 2022 indicated that the fair value of Rail was below its carrying value. Accordingly, we recognized a goodwill impairment charge of $925 million, resulting in a full impairment of Rail’s goodwill balance as of October 1, 2022. There was a $36 million tax benefit associated with this impairment charge. The valuation of the Rail reporting unit was based on estimates of future cash flows, which assumed a reduced demand forecast, lower margins due to continued inflationary cost pressures, and a discount rate approximately 140 basis points higher than utilized in the prior year valuation. The reduction in the demand forecast in the fourth quarter of 2022 was primarily driven by fourth quarter commercial developments, resulting in a lower outlook for the Company’s locomotive offerings.
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2024 and 2023 were as follows:

(Millions of dollars)December 31, 2023
Other Adjustments 1
December 31, 2024
Construction Industries
Goodwill$277 $(16)$261 
Impairments(22)— (22)
Net goodwill255 (16)239 
Resource Industries
Goodwill4,151 (27)4,124 
Impairments(1,175)— (1,175)
Net goodwill2,976 (27)2,949 
Energy & Transportation
Goodwill2,959 (20)2,939 
Impairment(925)— (925)
Net goodwill2,034 (20)2,014 
All Other 2
Goodwill43 (4)39 
Consolidated total
Goodwill7,430 (67)7,363 
Impairments(2,122)— (2,122)
Net goodwill$5,308 $(67)$5,241 
December 31, 2022
Other Adjustments 1
December 31, 2023
Construction Industries
Goodwill$287 $(10)$277 
Impairments(22)— (22)
Net goodwill265 (10)255 
Resource Industries
Goodwill4,130 21 4,151 
Impairments(1,175)— (1,175)
Net goodwill2,955 21 2,976 
Energy & Transportation
Goodwill2,947 12 2,959 
Impairment(925)— (925)
Net goodwill2,022 12 2,034 
All Other 2
Goodwill46 (3)43 
Consolidated total
Goodwill7,410 20 7,430 
Impairments(2,122)— (2,122)
Net goodwill$5,288 $20 $5,308 
1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other Segment (See Note 23).