GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

In conjunction with the GE Vernova separation, we changed our segment reporting structure. As a result, all prior period balances for those segments were updated to reflect this change.


	Commercial Engines & Services		Defense & Propulsion Technologies		Total


Balance at January 1, 2024	$	6,472	$	2,476	$	8,948
Goodwill impairments	—		(251)		(251)
Goodwill adjustments(a)	35		22		57
Balance at September 30, 2024	$	6,507	$	2,247	$	8,754

(a) Goodwill adjustments are primarily related to foreign currency exchange.

Also in conjunction with the GE Vernova separation, the composition of our reporting units for evaluation of goodwill impairment has changed. As a result, we allocated goodwill among new and realigned reporting units using a relative fair value approach and performed assessments for the new reporting units. We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. We performed an interim impairment test at our Colibrium Additive reporting unit within our Defense & Propulsion Technologies segment given declines in the additive manufacturing industry due to slower adoption of technology, which incorporated a combination of income and market valuation approaches. The results of the analysis indicated that the carrying value of the reporting unit was in excess of fair value and therefore we recorded a non-cash impairment loss of $251 million in Goodwill impairments in our Statement of Earnings (Loss). After the impairment charges there is no remaining goodwill in the reporting unit. Colibrium Additive is a critical business for current and future technology at GE Aerospace as we continue to focus on where it can create the most value.

Substantially all other intangible assets are subject to amortization. Intangible assets decreased $271 million during the nine months ended September 30, 2024, primarily as a result of amortization and the sale of our non-core licensing business to Dolby Laboratories, Inc. (see Note 2). Consolidated amortization expense was $89 million and $94 million in the three months ended, and $261 million and $278 million in the nine months ended,September 30, 2024 and 2023, respectively.