XML 39 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Intangible Assets and Goodwill (Tables)
 9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
(Dollars in Millions)
 
September 30, 2018
 
December 31, 2017
Intangible assets with definite lives:
 
 
 
 
Patents and trademarks — gross
 
$
35,478

 
36,427

Less accumulated amortization
 
9,077

 
7,223

Patents and trademarks — net (1)
 
26,401

 
29,204

Customer relationships and other intangibles — gross
 
21,176

 
20,204

Less accumulated amortization
 
8,168

 
7,463

Customer relationships and other intangibles — net
 
13,008

 
12,741

Intangible assets with indefinite lives:
 
 
 
 
Trademarks
 
7,002

 
7,082

Purchased in-process research and development (2)
 
2,226

 
4,201

Total intangible assets with indefinite lives
 
9,228

 
11,283

Total intangible assets — net
 
$
48,637

 
53,228


(1) Net of approximately $0.1 billion classified as assets held for sale on the Consolidated Balance Sheet related to the divestiture of the LifeScan business, which was pending as of September 30, 2018. See Note 10 to the Consolidated Financial Statements for additional details
(2) The decrease was primarily attributable to the write-down of $1.1 billion related to the assets acquired in the acquisitions of Alios Biopharma Inc. (Alios) and XO1 Limited (XO1). Of the $1.1 billion, the Company recorded a partial impairment charge of $0.8 billion related to the development program of AL-8176, an investigational drug for the treatment of Respiratory Syncytial Virus (RSV) and human metapneumovirus (hMPV) acquired with the 2014 acquisition of Alios. The impairment charge was calculated based on updated cash flow projections discounted for the inherent risk in the asset development and reflects the impact of recent phase 2b clinical trial suspension, a decrease in the probability of success factors and the ongoing analysis of asset development activities. In addition, an impairment charge of $0.3 billion was recorded for the discontinuation of the development project for an anti-thrombin antibody associated with the 2015 acquisition of XO1.
Goodwill
Goodwill as of September 30, 2018 was allocated by segment of business as follows:
(Dollars in Millions)
 
Consumer
 
Pharm
 
Med Devices
 
Total
Goodwill, net at December 31, 2017
 
$
8,875

 
9,109

 
13,922

 
31,906

Goodwill, related to acquisitions
 
169

 
51

 
208

 
428

Goodwill, related to divestitures
 
—

 
—

 
(1,246
)
(1)
(1,246
)
Currency translation/Other
 
(304
)
 
(48
)
 
(34
)
 
(386
)
Goodwill, net at September 30, 2018
 
$
8,740

 
9,112

 
12,850

 
30,702


(1) Goodwill of $1.0 billion is related to the divestiture of the LifeScan business and $0.2 billion is related to the divestiture of the Advanced Sterilization Products business, both of which were pending and classified as assets held for sale on the Consolidated Balance Sheet as of September 30, 2018.