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GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended
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Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company records goodwill as the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the reporting unit may be less than its carrying value. In connection with its revised segment structure, the Company performed a quantitative goodwill impairment test on its reporting units prior to the reorganization to determine if any impairment existed. The tests did not indicate any goodwill impairment. The Company then reassigned goodwill among its new reporting units using a relative fair value approach. Based on these analyses, the Climate Solutions Europe segment had a fair value of 10% above its carrying value. All other reporting units had fair values substantially in excess of their carrying values. However, there can be no assurances that changes in the macroeconomic environment or business conditions affecting our industry will not occur which could result in goodwill impairment charges in future periods. The changes in the carrying amount of reassigned goodwill were as follows:
(In millions) |  | Climate Solutions Americas |  | Climate Solutions Europe |  | Climate Solutions Asia Pacific, Middle East & Africa |  | Climate Solutions Transportation |  |  |  |  |  | Total
Balance as of December 31, 2024 |  | $ | 5,059 |  |  | $ | 7,035 |  |  | $ | 1,380 |  |  | $ | 1,127 |  |  |  |  |  |  | $ | 14,601 |
Acquisitions |  | — |  |  | — |  |  | 7 |  |  | 44 |  |  |  |  |  |  | 51 |
Foreign currency translation |  | 4 |  |  | 927 |  |  | 54 |  |  | 35 |  |  |  |  |  |  | 1,020 |
Balance as of June 30, 2025 |  | $ | 5,063 |  |  | $ | 7,962 |  |  | $ | 1,441 |  |  | $ | 1,206 |  |  |  |  |  |  | $ | 15,672 |
Identifiable intangible assets are amortized over their estimated useful lives and consisted of the following:
|  | June 30, 2025 |  | December 31, 2024
(In millions) |  | Gross Amount |  | Accumulated Amortization |  | Net Amount |  | Gross Amount |  | Accumulated Amortization |  | Net Amount
Customer relationships |  | $ | 6,239 |  |  | $ | (1,351) |  |  | $ | 4,888 |  |  | $ | 5,607 |  |  | $ | (939) |  |  | $ | 4,668 |
Patents and trademarks |  | 982 |  |  | (188) |  |  | 794 |  |  | 885 |  |  | (147) |  |  | 738 |
Service portfolios and other |  | 1,715 |  |  | (627) |  |  | 1,088 |  |  | 1,530 |  |  | (504) |  |  | 1,026 |
Total intangible assets |  | $ | 8,936 |  |  | $ | (2,166) |  |  | $ | 6,770 |  |  | $ | 8,022 |  |  | $ | (1,590) |  |  | $ | 6,432 |
Amortization of intangible assets was as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Amortization expense of Intangible assets |  | $ | 221 |  |  | $ | 208 |  |  | $ | 429 |  |  | $ | 419 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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