Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]


Note 9: Goodwill and Intangible Assets

Goodwill



(in billions)	Cable Communications		Residential Connectivity & Platforms		Business Services Connectivity		Media		Studios		Theme Parks		Sky		Total
Balance, December 31, 2022
Goodwill	$	16.2	$	—	$	—	$	14.7	$	3.7	$	5.8	$	26.0	$	66.4
Accumulated impairment losses(a)	—		—		—		—		—		—		(7.9)		(7.9)
	$	16.2	$	—	$	—	$	14.7	$	3.7	$	5.8	$	18.1	$	58.5
Segment change	(16.2)		27.4		2.2		4.7		—		—		(18.1)		—
Foreign currency translation and other	—		0.8		—		0.3		—		(0.3)		—		0.8
Balance, December 31, 2023
Goodwill	$	—	$	34.5	$	2.2	$	21.9	$	3.7	$	5.4	$	—	$	67.8
Accumulated impairment losses(a)	—		(6.3)		—		(2.2)		—		—		—		(8.5)
	$	—	$	28.2	$	2.2	$	19.7	$	3.7	$	5.4	$	—	$	59.3

Foreign currency translation and other	—		(0.4)		—		(0.2)		—		(0.5)		—		(1.0)
Balance, December 31, 2024
Goodwill	$	—	$	33.9	$	2.2	$	21.7	$	3.7	$	5.0	$	—	$	66.4
Accumulated impairment losses(a)	—		(6.1)		—		(2.2)		—		—		—		(8.2)
	$	—	$	27.8	$	2.2	$	19.5	$	3.7	$	5.0	$	—	$	58.2

(a) Amounts relate to the 2022 impairment related to Sky, with the 2023 amounts allocated to our new segments on a consistent basis with goodwill. Amounts are impacted by foreign currency translation each period.

Goodwill is calculated as the excess of the consideration transferred over the identifiable net assets acquired in a business combination and represents the future economic benefits expected to arise from anticipated synergies and intangible assets acquired that do not qualify for separate recognition, including increased footprint, assembled workforce, noncontractual relationships and other agreements. We assess the recoverability of our goodwill annually, or more frequently whenever events or substantive changes in circumstances indicate that the carrying amount of a reporting unit may exceed its fair value. We test goodwill for impairment at the reporting unit level. To determine our reporting units, we evaluate the components one level below the segment level and we aggregate the components if they have similar economic characteristics. We evaluate the determination of our reporting units used to test for impairment periodically or whenever events or substantive changes in circumstances occur. The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value. Unless presented separately, the impairment charge is included as a component of amortization expense.

In 2022, we recorded a goodwill impairment of $8.1 billion in our Sky reporting unit. The fair value of the reporting unit was estimated using a discounted cash flow analysis. When performing this analysis, we also considered multiples of earnings from comparable public companies and recent market transactions. The decline in fair value primarily resulted from an increased discount rate and reduced estimated future cash flows as a result of macroeconomic conditions in the Sky territories. The impairment is presented in goodwill and long-lived asset impairments in the consolidated statements of income.


Intangible Assets
		2024				2023
December 31 (in billions)	Weighted-Average Original Useful Life as of December 31, 2024	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Indefinite-Lived Intangible Assets:
Franchise rights	N/A	$	59.4			$	59.4
FCC licenses	N/A	2.8				2.8
Total		$	62.2			$	62.2

Finite-Lived Intangible Assets:
Customer relationships	13 years	$	20.5	$	(15.1)	$	20.8	$	(13.3)
Software	5 years	24.9		(16.2)		23.2		(14.8)
Other agreements and rights	27 years	11.4		(2.7)		11.3		(2.2)
Total		$	56.8	$	(34.0)	$	55.3	$	(30.3)

Indefinite-Lived Intangible Assets

Indefinite-lived intangible assets consist primarily of our cable franchise rights. Our cable franchise rights represent the values we attributed to agreements with state and local authorities that allow access to homes and businesses in cable service areas acquired in business combinations. We do not amortize our cable franchise rights because we have determined that they meet the definition of indefinite-lived intangible assets since there are no legal, regulatory, contractual, competitive, economic or other factors that limit the period over which these rights will contribute to our cash flows. We reassess this determination periodically or whenever events or substantive changes in circumstances occur. The purchase of spectrum rights is presented separately in our consolidated statements of cash flows.

We assess the recoverability of our cable franchise rights and other indefinite-lived intangible assets annually, or more frequently whenever events or substantive changes in circumstances indicate that the assets might be impaired. We evaluate the unit of account used to test for impairment of our cable franchise rights and other indefinite-lived intangible assets periodically or whenever events or substantive changes in circumstances occur to ensure impairment testing is performed at an appropriate level. The assessment of recoverability may first consider qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. When performing a quantitative assessment, we estimate the fair value of our cable franchise rights and other indefinite-lived intangible assets. If the fair value of our cable franchise rights or other indefinite-lived intangible assets were less than the carrying amount, we would recognize an impairment charge for the difference between the estimated fair value and the carrying value of the assets. Unless presented separately, the impairment charge is included as a component of amortization expense.

Finite-Lived Intangible Assets

Finite-lived intangible assets are subject to amortization and consist primarily of customer relationships acquired in business combinations, software, trade names and intellectual property rights. Our finite-lived intangible assets are amortized primarily on a straight-line basis over their estimated useful life or the term of the associated agreement.

The table below presents the estimated amortization expense of our customer relationships and other agreements and rights, including trade names and intellectual property rights.


Estimated Amortization Expense
(in billions)
2025	$	3.0
2026	$	2.8
2027	$	0.6
2028	$	0.5
2029	$	0.5

We capitalize direct development costs associated with internal-use software, including external direct costs of material and services and payroll costs for employees devoting time to these software projects. We also capitalize costs associated with arrangements that constitute the purchase of, or convey a license to, software licenses. We generally amortize them on a straight-line basis over a period not to exceed five years. We expense maintenance and training costs, as well as costs incurred during the preliminary stage of a project, as they are incurred. We capitalize initial operating system software costs and amortize them over the life of the associated hardware.

We evaluate the recoverability of our finite-lived intangible assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value. Unless presented separately, the impairment charge is included as a component of amortization expense.

In 2022, in connection with our annual goodwill impairment assessment, we also recorded impairments of intangible assets, which primarily related to customer relationship assets resulting from our Sky acquisition. These impairments totaled $485 million and are presented in goodwill and long-lived asset impairments in the consolidated statements of income.