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 millions)	HVAC		Refrigeration		Fire & Security		Total
Balance as of December 31, 2023	$	6,407	$	1,124	$	458	$	7,989
Acquisitions (1)	7,572		—		—		7,572
Divestitures (2)	—		—		31		31
Reclassified to held for sale (2)	—		3		(13)		(10)
Foreign currency translation	(364)		(26)		53		(337)
Balance as of June 30, 2024	$	13,615	$	1,101	$	529	$	15,245

Indefinite-lived intangible assets are 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 asset may be less than the carrying amount of the asset. All other intangible assets with finite useful lives are amortized over their estimated useful lives.


	June 30, 2024						December 31, 2023
(In millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Amortized:
Customer relationships	$	5,868	$	(852)	$	5,016	$	1,222	$	(610)	$	612
Patents and trademarks	973		(186)		787		332		(163)		169

Service portfolios and other	1,802		(621)		1,181		686		(503)		183
	8,643		(1,659)		6,984		2,240		(1,276)		964
Unamortized:
Trademarks and other	64		—		64		64		—		64
Intangible assets, net	$	8,707	$	(1,659)	$	7,048	$	2,304	$	(1,276)	$	1,028


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Amortization expense of Intangible assets	$	218	$	61	$	430	$	125