Intangible Assets and Goodwill

12 Months Ended

Dec. 28, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

At the end of 2014 and 2013, the gross and net amounts of intangible assets were:



(Dollars in Millions)	2014		2013
Intangible assets with definite lives:
Patents and trademarks — gross	$	9,074	9,164
Less accumulated amortization	4,700		4,146
Patents and trademarks — net	$	4,374	5,018
Customer relationships and other intangibles — gross	$	17,970	19,027
Less accumulated amortization	5,227		4,872
Customer relationships and other intangibles — net	$	12,743	14,155
Intangible assets with indefinite lives:
Trademarks	$	7,263	7,619
Purchased in-process research and development	2,842		1,155
Total intangible assets with indefinite lives	$	10,105	8,774
Total intangible assets — net	$	27,222	27,947

Goodwill as of December 28, 2014 and December 29, 2013, as allocated by segment of business, was as follows:



(Dollars in Millions)	Consumer			Pharmaceutical		Med Devices		Total
Goodwill at December 30, 2012	$	8,519		1,792		12,113		22,424
Goodwill, related to acquisitions	83			246		9		338
Goodwill, related to divestitures	(71		)	—		—		(71	)
Currency translation/other	—			30		77		107
Goodwill at December 29, 2013	$	8,531		2,068		12,199		22,798
Goodwill, related to acquisitions	13			665		—		678
Goodwill, related to divestitures	(138		)	—		(603	)	(741	)
Currency translation/other	(731		)	(107	)	(65	)	(903	)
Goodwill at December 28, 2014	$	7,675		2,626		11,531		21,832

The weighted average amortization periods for patents and trademarks and customer relationships and other intangible assets are 17 years and 24 years, respectively. The amortization expense of amortizable assets included in cost of products sold was $1,398 million, $1,363 million and $1,146 million before tax, for the fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. The estimated amortization expense for the five succeeding years approximates $1,300 million before tax, per year.

See Note 20 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures.

- 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.

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