Learn · Explainer
Goodwill and goodwill impairment
The asset acquisitions leave behind, why it isn't amortized, and how large it is at each company.
The short answer
Goodwill is the part of an acquisition's price that can't be assigned to the target's identifiable assets and liabilities: the premium paid for things like its workforce, its market position and expected savings from combining. It stays on the balance sheet until it's written down, and public companies don't amortize it under US accounting rules. Among the 93 companies here that report goodwill, the median share of total assets is 14.5%; at Broadcom it's 57.2%.
How goodwill gets on the balance sheet
When one company buys another, it records the target's assets and liabilities at their fair values, including intangible assets it can identify separately, such as customer relationships, patents and brands. Whatever the buyer paid above that net amount is goodwill. A company that has grown mainly by building its own products has little; one that has made big acquisitions can have goodwill worth a large share of everything it owns.
Goodwill compared with other intangible assets
Identified intangibles with a limited life, like customer lists, are amortized over that life, which is the "amortization of acquired intangibles" many companies add back in their adjusted earnings. Goodwill isn't amortized. Instead it's tested for impairment at least once a year. The SEC's balance sheet rules ask for intangible assets to be shown by class when a class is more than 5% of total assets, so goodwill usually gets its own line.
Impairments
If a business unit is worth less than its carrying amount, including its goodwill, the company writes goodwill down and records the loss on the income statement. It's a non-cash charge, so it doesn't affect operating cash flow, but it can wipe out a year's net income, and it's an admission that an acquisition hasn't worked out as priced. Goodwill can't be written back up later. Recent impairments at covered companies:
- CVS Health: $5.7B in fiscal 2025
- Altria: $1.2B in fiscal 2025
- Citigroup: $726M in fiscal 2025
- Booking Holdings: $180M in fiscal 2025
- Philip Morris International: $41M in fiscal 2025
- Applied Materials: $41M in fiscal 2025
One-time items covers how charges like this move net income.
Goodwill at every company
Goodwill and total assets from each company's balance sheet at its latest fiscal year end, sorted by goodwill's share.
Common questions
What is goodwill in accounting?
The amount an acquirer paid above the fair value of the target's identifiable net assets. It's recorded as an asset on the buyer's balance sheet.
Is goodwill amortized?
Not under US GAAP for public companies. It's tested for impairment at least annually and written down if a business unit's value falls below its carrying amount.
What does a goodwill impairment mean?
That part of what the company paid for an acquisition is no longer supported by that business's value. The write-down reduces net income but not cash.
Why do some companies have so much goodwill?
Because they grew through large acquisitions. At Broadcom, goodwill is 57.2% of total assets.
Can goodwill go back up?
No. Once written down, goodwill can't be restored. It grows only through new acquisitions.
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.