Goodwill and Other Intangible Assets, net

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill and Other Intangible Assets, net:

The movements in goodwill were as follows:

(in millions)	European Union		Eastern Europe		Middle East & Africa		South & Southeast Asia		East Asia & Australia		Americas		Other		Total
Balances at January 1, 2020	$	1,338	$	300	$	89	$	2,898	$	551	$	682	$	—	$	5,858
Changes due to:
Currency	96		17		(3)		17		8		(29)		—		106
Balances, December 31, 2020	1,434		317		86		2,915		559		653		—		5,964
Changes due to:
Acquisitions	30		—		—		—		—		—		968		998
Currency	(91)		(22)		(7)		(87)		(20)		(42)		(13)		(282)
Balances, December 31, 2021	$	1,373	$	295	$	79	$	2,828	$	539	$	611	$	955	$	6,680

The increase in goodwill in 2021 was due primarily to the preliminary purchase price allocation of PMI's business combinations. For further details on these business combinations, see Note 6. Acquisitions.

At December 31, 2021, goodwill primarily reflects PMI’s business combinations in Colombia, Greece, Indonesia, Mexico, Pakistan, the Philippines and Serbia, as well as the preliminary purchase price allocation of Fertin Pharma A/S and Vectura Group plc., which were acquired in September 2021.

Details of other intangible assets were as follows:

		December 31, 2021						December 31, 2020
(in millions)	Weighted-Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Non-amortizable intangible assets		$	1,312			$	1,312	$	1,289			$	1,289
Amortizable intangible assets:
Trademarks	12 years	1,201		$	639	562		1,233		$	594	639
Developed technology, including patents	12 years	859		63		796		93		41		52
Other(1)	12 years	238		90		148		126		87		39
Total other intangible assets		$	3,610	$	792	$	2,818	$	2,741	$	722	$	2,019

(1) Primarily includes distribution networks and customer relationships.

Non-amortizable intangible assets substantially consist of trademarks from PMI’s acquisitions in Indonesia and Mexico. The increase since December 31, 2020, was due to the preliminary purchase price allocation associated with PMI's business combinations in 2021

(primarily in-process research and development ("IPR&D")) in the amount of $53 million, partially offset by currency movements of ($30 million). For further details, see Note 6. Acquisitions.

The increase in the gross carrying amount of amortizable intangible assets from December 31, 2020, was due to the preliminary purchase price allocation associated with PMI's business combinations in 2021 (primarily developed technology and customer relationships) in the amount of $917 million, partially offset by currency movements of ($71 million).

The change in the accumulated amortization from December 31, 2020 was mainly due to the 2021 amortization of $96 million, partially offset by currency movements of ($26 million).

Amortization expense for each of the next five years (including PMI's 2021 acquisitions of Fertin Pharma A/S and Vectura Group plc.) is estimated to be $152 million or less, assuming no additional transactions occur that require the amortization of intangible assets.

During the second quarter of 2021, PMI completed its annual review of goodwill and non-amortizable intangible assets for potential impairment, and no impairment charges were required as a result of this review.