Company: GE
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000040545-25-000062
Chunk: 49

Company: GENERAL ELECTRIC CO
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 4
Chunk 49
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6,341 $2,197 $8,538 Goodwill acquisition— 52 52 Goodwill adjustments(a)101 5 106 Balance at March 31, 2025$6,442 $2,254 $8,696 (a) Goodwill adjustments are primarily related to foreign currency exchange.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. In the first quarter of 2025, we did not identify any reporting units that required an interim impairment test.All other intangible assets are subject to amortization. Intangible assets increased $19 million during the three months ended March 31, 2025, primarily as a result of an acquisition of a business within our Defense & Propulsion Technologies segment, additions of capitalized software and foreign currency exchange, partially offset by amortization. Consolidated amortization expense was $89 million and $88 million for the three months ended March 31, 2025 and 2024, respectively.

NOTE 8. CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS

Contract assets (liabilities) and other deferred assets (income), on a net basis, increased the net liability position by $350 million for the three months ended March 31, 2025, primarily due to an increase in long-term service agreements liabilities of $272 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $1,902 million and net unfavorable changes in estimated profitability of $279 million, including quarterly updates to contract margins and an estimated impact from tariffs, primarily in Commercial Engines & Services, partially offset by revenue recognized of $1,867 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $2,040 million and $1,881 million for the three months ended March 31, 2025 and 2024, respectively.CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEMarch 31, 2025December 31, 2024Long-term service agreements$2,309 $2,374 Equipment and other service agreements630 609 Current contract assets$2,940 $2,982 Nonrecurring engineering costs(a)$2,443 $2,438 Customer advances and other(b