Intangible assets and goodwill

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and goodwill

Intangible assets and goodwill

At the end of fiscal years 2023 and 2022, the gross and net amounts of intangible assets were:

(Dollars in Millions)	2023	2022
Intangible assets with definite lives:
Patents and trademarks — gross	$40,417	39,388
Less accumulated amortization	(24,808)	(20,616)
Patents and trademarks — net	$15,609	18,772
Customer relationships and other intangibles — gross	$20,322	19,764
Less accumulated amortization	(12,685)	(11,363)
Customer relationships and other intangibles — net(1)	$7,637	8,401
Intangible assets with indefinite lives:
Trademarks	$1,714	1,630
Purchased in-process research and development	9,215	9,686
Total intangible assets with indefinite lives	$10,929	11,316
Total intangible assets — net	$34,175	38,489

(1)The majority is comprised of customer relationships

Goodwill as of December 31, 2023 and January 1, 2023, as allocated by segment of business, was as follows:

(Dollars in Millions)	Innovative Medicine	MedTech		Total
Goodwill at January 2, 2022	$10,580	14,856		25,436
Goodwill, related to acquisitions	—	11,056		11,056
Goodwill, related to divestitures	—	—		—
Currency translation/other	(396)	(49)		(445)
Goodwill at January 1, 2023	10,184	25,863		36,047
Goodwill, related to acquisitions	—	—		—
Goodwill, related to divestitures	—	—		—
Currency translation/other	223	288	*	511
Goodwill at December 31, 2023	$10,407	26,151		36,558

*Includes purchase price allocation adjustments for Abiomed

The weighted average amortization period for patents and trademarks is approximately 11 years. The weighted average amortization period for customer relationships and other intangible assets is approximately 19 years. The amortization expense of amortizable assets included in Cost of products sold was $4.5 billion, $3.9 billion and $4.2 billion before tax, for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022, respectively. Intangible asset write-downs are included in Other (income) expense, net.

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

(Dollars in Millions)
2024	2025	2026	2027	2028
$4,300	3,500	2,900	2,300	1,600

See Note 18 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures.