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Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible assets and goodwill
A.Intangible assets
 
Intangible assets were comprised of the following:
 
  December 31, 2023
(Millions of dollars)Weighted
Amortizable
Life (Years)
Gross
Carrying
Amount 1
Accumulated
Amortization 1
Net
Customer relationships16$2,232 $(1,814)$418 
Intellectual property15484 (380)104 
Other17117 (75)42 
Total finite-lived intangible assets15$2,833 $(2,269)$564 
  December 31, 2022
Weighted
Amortizable
Life (Years)		Gross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships16$2,233 $(1,675)$558 
Intellectual property121,473 (1,320)153 
Other16132 (85)47 
Total finite-lived intangible assets14$3,838 $(3,080)$758 
1 For the year ended December 31, 2023, $1.0 billion of intangible assets were fully amortized and have been removed.
 
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.

Amortization expense related to intangible assets was $218 million, $284 million and $302 million for 2023, 2022 and 2021, respectively.

As of December 31, 2023, amortization expense related to intangible assets is expected to be: 

(Millions of dollars)
20242025202620272028Thereafter
$175$166$95$31$24$73
 
B.Goodwill
 
There were no goodwill impairments during 2023 or 2021.

Our annual impairment tests completed in the fourth quarter of 2022 indicated the fair value of each reporting unit was substantially above its respective carrying value, including goodwill, with the exception of our Rail reporting unit.

The Rail reporting unit is a part of our Energy & Transportation segment. Rail’s product portfolio includes diesel-electric locomotives and other rail-related products and services. The annual impairment test completed in the fourth quarter of 2022 indicated that the fair value of Rail was below its carrying value. Accordingly, we recognized a goodwill impairment charge of $925 million, resulting in a full impairment of Rail’s goodwill balance as of October 1, 2022. There was a $36 million tax benefit associated with this impairment charge. The valuation of the Rail reporting unit was based on estimates of future cash flows, which assumed a reduced demand forecast, lower margins due to continued inflationary cost pressures, and a discount rate approximately 140 basis points higher than utilized in the prior year valuation. The reduction in the demand forecast in the fourth quarter of 2022 was primarily driven by fourth quarter commercial developments, resulting in a lower outlook for the Company’s locomotive offerings.
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2023 and 2022 were as follows:

(Millions of dollars)December 31, 2022AcquisitionsImpairment Loss
Other Adjustments 1
December 31, 2023
Construction Industries
Goodwill$287 $— $— $(10)$277 
Impairments(22)— — — (22)
Net goodwill265 — — (10)255 
Resource Industries
Goodwill4,130 — — 21 4,151 
Impairments(1,175)— — — (1,175)
Net goodwill2,955 — — 21 2,976 
Energy & Transportation
Goodwill2,947 — — 12 2,959 
Impairment(925)— — — (925)
Net goodwill2,022 — — 12 2,034 
All Other 2
Goodwill46 — — (3)43 
Consolidated total
Goodwill7,410 — — 20 7,430 
Impairments(2,122)— — — (2,122)
Net goodwill$5,288 $— $— $20 $5,308 
December 31, 2021AcquisitionsImpairment Loss
Other Adjustments 1
December 31, 2022
Construction Industries
Goodwill$302 $— $— $(15)$287 
Impairments(22)— — — (22)
Net goodwill280 — — (15)265 
Resource Industries
Goodwill4,182 — — (52)4,130 
Impairments(1,175)— — — (1,175)
Net goodwill3,007 — — (52)2,955 
Energy & Transportation
Goodwill2,985 25 — (63)2,947 
Impairment— — (925)— (925)
Net goodwill2,985 25 (925)(63)2,022 
All Other 2
Goodwill52 — — (6)46 
Consolidated total
Goodwill7,521 25 — (136)7,410 
Impairments(1,197)— (925)— (2,122)
Net goodwill$6,324 $25 $(925)$(136)$5,288 
1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other operating segment (See Note 23).