Company: GE
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0000040545-25-000111
Chunk: 102

Company: GENERAL ELECTRIC CO
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 8
Chunk 102
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 Propulsion TechnologiesTotalBalance at January 1, 2025$6,341 $2,197 $8,538 Goodwill acquisition— 142 142 Goodwill adjustments(a)266 59 326 Balance at June 30, 2025$6,607 $2,398 $9,006 (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 second quarter of 2025, we did not identify any reporting units that required an interim impairment test. Other intangible assets increased $79 million during the six months ended June 30, 2025, primarily as a result of acquisitions within our Defense & Propulsion Technologies segment. All other intangible assets are subject to amortization. Consolidated amortization expense was $93 million and $83 million in the three months ended and $182 million and $172 million in the six months ended June 30, 2025 and 2024, respectively.

2025 2Q FORM 10-Q 23

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 $364 million for the six months ended June 30, 2025, primarily due to an increase in long-term service agreements liabilities of $387 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $4,359 million and net unfavorable changes in estimated profitability of $271 million, including quarterly updates to contract margins and an estimated impact from tariffs, primarily in Commercial Engines & Services, partially offset by revenue recognized of $4,284 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $3,892 million and $3,537 million for the six months ended June 30, 2025 and 2024, respectively.CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEJune 30, 2025December 31, 2024Long-term service agreements$2,403 $2,374 Equipment and other service agreements656 609 Current contract assets$3,059 $2,982