Intangible Assets and Goodwill (Tables)

9 Months Ended

Oct. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

(Dollars in Millions)	October 3, 2021		January 3, 2021
Intangible assets with definite lives:
Patents and trademarks — gross	$	39,176	39,990
Less accumulated amortization	(19,569)		(17,618)
Patents and trademarks — net	19,607		22,372
Customer relationships and other intangibles — gross	22,950		22,898
Less accumulated amortization	(11,637)		(10,912)
Customer relationships and other intangibles — net*	11,313		11,986
Intangible assets with indefinite lives:
Trademarks	7,013		7,195
Purchased in-process research and development (1)	9,843		11,849
Total intangible assets with indefinite lives	16,856		19,044
Total intangible assets — net	$	47,776	53,402

*The majority is comprised of customer relationships

(1)In the fiscal third quarter of 2021, the Company recorded a partial IPR&D impairment charge of $0.9 billion primarily related to expected development delays in the general surgery digital robotics platform (Ottava) acquired with the Auris Health acquisition in 2019. The impairment charge was calculated based on revisions to the discounted cash flow valuation model reflecting a delay of first in human procedures of approximately two years from the initial acquisition model assumption of the second half of 2022. The remaining reduction was driven by assets that reached commercialization and are now classified as having definite lives.

Goodwill

Goodwill as of October 3, 2021 was allocated by segment of business as follows:

(Dollars in Millions)	Consumer Health		Pharmaceutical	Medical Devices	Total
Goodwill at January 3, 2021	$	10,336	11,009	15,048	36,393
Goodwill, related to acquisitions	—		—	—	—
Goodwill, related to divestitures	(7)		—	—	(7)
Currency translation/Other	(347)		(283)	(187)	(817)
Goodwill at October 3, 2021	$	9,982	10,726	14,861	35,569

Intangible Asset Amortization Expense

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

(Dollars in Millions)
2021	2022	2023	2024	2025
$4,700	4,500	4,500	4,300	3,600