Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

11. Goodwill and Other Intangible Assets

A. Goodwill

The components of, and changes in, the carrying amount of goodwill are as follows:


(MILLIONS OF DOLLARS)	U.S.		International		Total
Balance, December 31, 2020	$	1,425	$	1,269	$	2,694
Adjustments	(1)		2		1
Other(a)	—		23		23
Balance, June 30, 2021	$	1,424	$	1,294	$	2,718

(a) Includes adjustments for foreign currency translation.

The gross goodwill balance was $3,254 million and $3,230 million as of June 30, 2021 and December 31, 2020, respectively. Accumulated goodwill impairment losses were $536 million as of June 30, 2021 and December 31, 2020.

B. Other Intangible Assets

The components of identifiable intangible assets are as follows:


	As of June 30, 2021						As of December 31, 2020
					Identifiable						Identifiable
	Gross				Intangible Assets		Gross				Intangible Assets
	Carrying		Accumulated		Less Accumulated		Carrying		Accumulated		Less Accumulated
(MILLIONS OF DOLLARS)	Amount		Amortization		Amortization		Amount		Amortization		Amortization
Finite-lived intangible assets:
Developed technology rights	$	2,006	$	(896)	$	1,110	$	1,968	$	(809)	$	1,159
Brands and tradenames	428		(253)		175		427		(243)		184
Other	479		(323)		156		474		(306)		168
Total finite-lived intangible assets	2,913		(1,472)		1,441		2,869		(1,358)		1,511
Indefinite-lived intangible assets:
Brands and tradenames	104		—		104		104		—		104
In-process research and development	88		—		88		88		—		88
Product rights	7		—		7		7		—		7
Total indefinite-lived intangible assets	199		—		199		199		—		199
Identifiable intangible assets	$	3,112	$	(1,472)	$	1,640	$	3,068	$	(1,358)	$	1,710

C. Amortization

Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as it benefits multiple business functions. Amortization expense related to finite-lived acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, general and administrative expenses or Research and development expenses, as appropriate. Total amortization expense for finite-lived intangible assets was $52 million and $103 million for the three and six months ended June 30, 2021, respectively, and $61 million and $122 million for the three and six months ended June 30, 2020, respectively.