Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2023 are as follows:

(In millions)	Developed Markets (1)		Greater China		JANZ		Emerging Markets (2)		Total
Balance at December 31, 2022:	7,461.5		940.6		689.0		1,334.7		10,425.8
Acquisitions	95.3		—		—		—		95.3
Foreign currency translation	60.0		—		(8.6)		0.7		52.1
Balance at March 31, 2023:	$	7,616.8	$	940.6	$	680.4	$	1,335.4	$	10,573.2

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(1)Balances as of March 31, 2023 and December 31, 2022 include an accumulated impairment loss of $385.0 million.

(2)Balances as of March 31, 2023 and December 31, 2022 include an accumulated impairment loss of $117.0 million.

Components of Intangible Assets

Intangible assets consist of the following components at March 31, 2023 and December 31, 2022:

(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
March 31, 2023
Product rights, licenses and other (1)	15	$	37,975.1	$	15,604.6	$	22,370.5
In-process research and development		331.1		—		331.1
		$	38,306.2	$	15,604.6	$	22,701.6
December 31, 2022
Product rights, licenses and other (1)	15	$	37,490.5	$	14,923.6	$	22,566.9
In-process research and development		40.2		—		40.2
		$	37,530.7	$	14,923.6	$	22,607.1

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(1)Represents amortizable intangible assets. Other intangible assets consists principally of customer lists and contractual rights.

Finite-lived Intangible Assets Amortization Expense

	Three Months Ended
	March 31,
(In millions)	2023		2022
Intangible asset amortization expense	$	603.3	$	648.1
Intangible asset disposal & impairment charges	32.0		—
Total intangible asset amortization expense (including disposal & impairment charges)	$	635.3	$	648.1

During the three months ended March 31, 2023, the Company recognized an intangible asset charge of approximately $32.0 million, which was recorded within Cost of sales in the condensed consolidated statement of operations, to write down the disposal group to fair value, less cost to sell, related to our Upjohn Distributor Markets, which are classified as held for sale. As of March 31, 2023 and December 31, 2022, the Company has approximately $198.3 million and $230.3 million, respectively, of intangible assets related to the Upjohn Distributor Markets that are classified as held for sale in the condensed consolidated balance sheets. Refer to Note 5 Divestitures for additional information.

Expected Amortization Expense

Intangible asset amortization expense over the remainder of 2023 and for the years ending December 31, 2024 through 2027 is estimated to be as follows:

(In millions)
2023	$	1,772
2024	2,274
2025	2,179
2026	2,124
2027	1,912