Company: GE
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0000040545-25-000132
Chunk: 67

Company: GENERAL ELECTRIC CO
Filing Date: 2025-10-21
Form: 10-Q
Item: Item 4
Chunk 67
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 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 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $5,884 million and $5,063 million for the nine months ended September 30, 2025 and 2024, respectively.CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMESeptember 30, 2025December 31, 2024Long-term service agreements$2,423 $2,374 Equipment and other service agreements688 609 Current contract assets$3,111 $2,982 Nonrecurring engineering costs(a)$2,425 $2,438 Customer advances and other(b)2,295 2,393 Contract and other deferred assets4,720 4,831 Total contract and other deferred assets$7,830 $7,814 Long-term service agreement liabilities$9,519 $8,994 Current deferred income332 359 Contract liabilities and current deferred income$9,852 $9,353 Non-current deferred income1,081