Intangible Assets and Goodwill (Tables)

6 Months Ended

Jul. 03, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

(Dollars in Millions)	July 3, 2022		January 2, 2022
Intangible assets with definite lives:
Patents and trademarks — gross	$	36,885	38,572
Less accumulated amortization	(20,336)		(20,088)
Patents and trademarks — net	16,549		18,484
Customer relationships and other intangibles — gross	22,558		23,011
Less accumulated amortization	(12,269)		(11,925)
Customer relationships and other intangibles — net(1)	10,289		11,086
Intangible assets with indefinite lives:
Trademarks	6,794		6,985
Purchased in-process research and development(2)	8,776		9,837
Total intangible assets with indefinite lives	15,570		16,822
Total intangible assets — net	$	42,408	46,392

(1)The majority is comprised of customer relationships

(2)In the fiscal first quarter of 2022, the Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of Atopic Dermatitis (AD) and Hidradenitis Suppurativa (HS). Additional information regarding efficacy of the AD indication became available which led the Company to the decision to terminate the development of bermekimab for AD. The Company acquired all rights to bermekimab from XBiotech, Inc.in the fiscal year 2020. The remaining reduction was driven by assets that reached commercialization and are now classified as having definite lives.

Goodwill

Goodwill as of July 3, 2022 was allocated by segment of business as follows:

(Dollars in Millions)	Consumer Health		Pharmaceutical	MedTech	Total
Goodwill at January 2, 2022	$	9,810	10,580	14,856	35,246
Goodwill, related to acquisitions	—		—	195	195
Currency translation/Other	(665)		(545)	(65)	(1,275)
Goodwill at July 3, 2022	$	9,145	10,035	14,986	34,166

Intangible Asset Amortization Expense

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

(Dollars in Millions)
2022	2023	2024	2025	2026
$4,400	4,400	4,200	3,400	2,800