Goodwill and Intangible AssetsGoodwill generated from our business acquisitions was primarily attributable to expected synergies and potential monetization opportunities. Changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2024 and 2023 are as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Family of Apps | | Reality Labs | | Total |
| December 31, 2022 | $ | 19,250 | | | $ | 1,056 | | | $ | 20,306 | |
| Acquisitions | — | | | 357 | | | 357 | |
| Adjustments | (4) | | | (5) | | | (9) | |
| December 31, 2023 | 19,246 | | | 1,408 | | | 20,654 | |
| Acquisitions | — | | | — | | | — | |
| | | | | |
| December 31, 2024 | $ | 19,246 | | | $ | 1,408 | | | $ | 20,654 | |
The following table sets forth the major categories of the intangible assets and their weighted-average remaining useful lives (in millions):
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| | | December 31, 2024 | | December 31, 2023 |
| Weighted-Average Remaining Useful Lives
(in years) | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| | | | | | | | | | | | | |
| Acquired technology | 4.6 | | $ | 442 | | | $ | (247) | | | $ | 195 | | | $ | 478 | | | $ | (182) | | | $ | 296 | |
| Acquired patents | 3.7 | | 252 | | | (165) | | | 87 | | | 287 | | | (233) | | | 54 | |
| Acquired software | 2.7 | | 250 | | | (58) | | | 192 | | | — | | | — | | | — | |
| Other | 2.0 | | 24 | | | (8) | | | 16 | | | 28 | | | (15) | | | 13 | |
| Total finite-lived assets | | | 968 | | | (478) | | | 490 | | | 793 | | | (430) | | | 363 | |
| Total indefinite-lived assets | N/A | | 425 | | | — | | | 425 | | | 425 | | | — | | | 425 | |
| Total | | | $ | 1,393 | | | $ | (478) | | | $ | 915 | | | $ | 1,218 | | | $ | (430) | | | $ | 788 | |
Amortization expense of intangible assets for the years ended December 31, 2024, 2023, and 2022 was $211 million, $161 million, and $185 million, respectively.
As of December 31, 2024, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in millions):
| | | | | |
| 2025 | $ | 205 | |
| 2026 | 125 | |
| 2027 | 64 | |
| 2028 | 38 | |
| 2029 | 23 | |
| Thereafter | 35 | |
| Total | $ | 490 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.