Intangible Assets

12 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets at September 30 consisted of:



	2017				2016
(Millions of dollars)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets
Customer relationships	$	3,393	$	564	$	3,360	$	339
Developed technology	3,508		1,029		3,409		754
Product rights	131		54		125		43
Trademarks	408		65		405		45
Patents and other	370		274		349		254
Amortized intangible assets	$	7,811	$	1,986	$	7,648	$	1,435

Unamortized intangible assets
Acquired in-process research and development	$	67			$	66
Trademarks	2				2
Unamortized intangible assets	$	69			$	68

Intangible amortization expense was $533 million, $552 million and $346 million in 2017, 2016 and 2015, respectively. The estimated aggregate amortization expense for the fiscal years ending September 30, 2018 to 2022 are as follows: 2018 — $526 million; 2019 — $519 million; 2020 — $518 million; 2021 — $514 million; 2022 — $503 million.

The following is a reconciliation of goodwill by business segment:



(Millions of dollars)	Medical			Life Sciences		Total
Goodwill as of September 30, 2015	$	6,807		$	730	$	7,537
Divestiture (A)	(32		)	—		(32		)
Purchase accounting adjustments (B)	(79		)	1		(78		)
Currency translation	(8		)	—		(8		)
Goodwill as of September 30, 2016	$	6,688		$	731	$	7,419
Acquisitions (C)	119			24		143
Divestiture (A)	(25		)	—		(25		)
Purchase accounting adjustments	4			—		4
Currency translation	16			6		22
Goodwill as of September 30, 2017	$	6,802		$	761	$	7,563


(A)	Represents goodwill derecognized upon the Company's sale of a 50.1% controlling financial interest in the Respiratory Solutions business, as further discussed in Note 10.


(B)	Primarily represents $94 million resulting from adjustments to the deferred tax liability accounts recorded upon the Company's acquisition of CareFusion.


(C)	Represents goodwill recognized upon the Company's acquisitions during the current year. Such acquisitions were not material individually or in the aggregate.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details