Company: GE
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0000040545-25-000132
Chunk: 107

Company: GENERAL ELECTRIC CO
Filing Date: 2025-10-21
Form: 10-Q
Item: Item 8
Chunk 107
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5 and December 31, 2024, respectively. Expense on our operating lease portfolio, primarily from our long-term fixed leases, was $97 million and $120 million for the three months ended September 30, 2025 and 2024, respectively, and $294 million and $360 million for the nine months ended September 30, 2025 and 2024, respectively. 

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

Commercial Engines & ServicesDefense & Propulsion TechnologiesTotalBalance at January 1, 2025$6,341 $2,197 $8,538 Goodwill acquisition— 142 142 Goodwill adjustments(a)293 69 362 Balance at September 30, 2025$6,634 $2,408 $9,041 (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 third quarter of 2025, we did not identify any reporting units that required an interim impairment test. Other intangible assets increased $26 million during the nine months ended September 30, 2025, primarily as a result of acquisitions within our Defense & Propulsion Technologies segment, additions of capitalized software and foreign currency exchange, partially offset by amortization. All other intangible assets are subject to amortization. Consolidated amortization expense was $88 million and $89 million in the three months ended and $270 million and $261 million in the nine months ended September 30, 2025 and 2024, respectively.

2025 3Q 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 $550 million for the nine months ended September 30, 2025, primarily due to an increase in long-term service agreements liabilities of $525 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $7,147 million and net unfavorable changes in estimated profitability of $296 million, including quarterly updates to contract margins and an estimated impact from tariffs, primarily in Commercial Engines & Services, partially offset by revenue recognized of $6,865