Intangible Assets and Goodwill (Tables)

6 Months Ended

Jul. 02, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

At the end of fiscal years 2022 and 2021, the gross and net amounts of intangible assets were:

	2022						2021
(Dollars in Millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Patents and trademarks	$	4,400	$	(1,485)	$	2,915	$	4,705	$	(1,350)	$	3,355
Customer relationships	2,127		(1,063)		1,064		2,265		(1,021)		1,244
Other intangibles	1,343		(650)		693		1,377		(628)		749
Total definite-lived intangible assets	7,870		(3,198)		4,672		8,347		(2,999)		5,348
Indefinite-lived intangible assets:
Trademarks	5,122		—		5,122		5,291		—		5,291
Other	59		—		59		62		—		62
Total intangible assets, net	$	13,051	$	(3,198)	$	9,853	$	13,700	$	(2,999)	$	10,701

As of July 2, 2023 and January 1, 2023, the gross and net amounts of intangible assets were:

	July 2, 2023						January 1, 2023
(Dollars in Millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Patents and trademarks	$	4,383	$	(1,583)	$	2,800	$	4,400	$	(1,485)	$	2,915
Customer relationships	2,099		(1,087)		1,012		2,127		(1,063)		1,064
Other intangibles	1,348		(671)		677		1,343		(650)		693
Total definite-lived intangible assets	$	7,830	$	(3,341)	$	4,489	$	7,870	$	(3,198)	$	4,672
Indefinite-lived intangible assets:
Trademarks	5,128		—		5,128		5,122		—		5,122
Other	61		—		61		59		—		59
Total intangible assets, net	$	13,019	$	(3,341)	$	9,678	$	13,051	$	(3,198)	$	9,853

Intangible Asset Amortization Expense

The estimated amortization expense before tax for the five succeeding years is approximately:

(Dollars in Millions)
2023		2024		2025		2026		2027
$	314	$	304	$	280	$	276	$	272

Amortization expense, which was included in Cost of Sales, for the Company’s amortizable assets was as follows:

	Fiscal Three Months Ended				Fiscal Six Months Ended
(Dollars in Millions)	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Trademarks	$	53	$	48	$	94	$	98
Other intangible assets	26		41		66		84
Total Amortization expense	$	79	$	89	$	160	$	182

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated amortization expense before tax for the remainder of 2023 and the five succeeding years is approximately:

(Dollars in Millions)
Remainder of 2023		2024		2025		2026		2027		2028
$	157	$	306	$	282	$	273	$	274	$	270

Goodwill

Goodwill by reportable segment is as follows:

(Dollars in Millions)	Consumer Health Business		Self Care		Skin Health and Beauty		Essential Health		Total
Goodwill at January 3, 2021	$	10,326	$	—	$	—	$	—	$	10,326
Currency translation/other	(516)		—		—		—		(516)
Goodwill at January 2, 2022	$	9,810	$	—	$	—	$	—	$	9,810
Currency translation/other	(664)		—		—		—		(664)
Goodwill at July 3, 2022	$	9,146	$	—	$	—	$	—	$	9,146
Realignment of segment goodwill	(9,146)		5,193		2,334		1,619		—
Currency translation/other	—		1		31		7		39
Goodwill at January 1, 2023	$	—	$	5,194	$	2,365	$	1,626	$	9,185

Goodwill by reportable segment was as follows:

(Dollars in Millions)	Self Care		Skin Health and Beauty		Essential Health		Total
Goodwill at January 1, 2023	$	5,194	$	2,365	$	1,626	$	9,185
Currency translation/other	(39)		(76)		11		(104)
Goodwill at July 2, 2023	$	5,155	$	2,289	$	1,637	$	9,081