Company: GE
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000040545-25-000015
Chunk: 198

Company: GENERAL ELECTRIC CO
Filing Date: 2025-02-03
Form: 10-K
Item: Item 1
Chunk 198
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-average remaining lease term7.8 years7.7 years8.4 yearsWeighted-average discount rate4.6 %4.5 %4.4 %

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

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.Changes in the carrying value of Goodwill for years ending December 31, 2024, 2023 and 2022 were as follows:Commercial Engines & ServicesDefense & Propulsion TechnologiesTotalBalance at December 31, 2022 $6,386 $2,449 $8,835 Goodwill adjustments(a)86 26 113 Balance at December 31, 2023$6,472 $2,476 $8,948 Goodwill impairment— (251)(251)Goodwill adjustments(a)(131)(28)(159)Balance at December 31, 2024$6,341 $2,197 $8,538 (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. In the third quarter of 2024, 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. In the fourth quarter of 2024, we performed our annual impairment test. Based on the results of this test, the fair values of each of our reporting units