Intangible Assets and Goodwill

9 Months Ended

Sep. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible assets and goodwill

Intangible assets that have finite useful lives are amortized over their estimated useful lives. The latest annual impairment assessment of goodwill and indefinite lived intangible assets was completed in the fiscal fourth quarter of 2023. Future impairment tests for goodwill and indefinite lived intangible assets will be performed annually in the fiscal fourth quarter, or sooner, if warranted.

(Dollars in Millions)	September 29, 2024	December 31, 2023
Intangible assets with definite lives:
Patents and trademarks — gross	$44,926	40,417
Less accumulated amortization	(26,699)	(24,808)
Patents and trademarks — net	18,227	15,609
Customer relationships and other intangibles — gross	20,715	20,322
Less accumulated amortization	(13,506)	(12,685)
Customer relationships and other intangibles — net(1)	7,209	7,637
Intangible assets with indefinite lives:
Trademarks	1,704	1,714
Purchased in-process research and development	12,350	9,215
Total intangible assets with indefinite lives	14,054	10,929
Total intangible assets — net	$39,490	34,175

(1)The majority is comprised of customer relationships

Goodwill as of September 29, 2024 was allocated by segment of business as follows:

(Dollars in Millions)	Innovative Medicine	MedTech	Total
Goodwill at December 31, 2023	$10,407	26,151	36,558
Goodwill, related to acquisitions	620	7,567	8,187
Goodwill, related to divestitures	—	(56)	(56)
Currency translation/Other	85	25	110
Goodwill at September 29, 2024	$11,112	33,687	44,799

The weighted average amortization period for patents and trademarks is approximately 12 years. The weighted average amortization period for customer relationships and other intangible assets is approximately 18 years. The amortization expense of amortizable intangible assets included in the cost of products sold was $1.2 billion and $1.1 billion for the fiscal third quarters ended September 29, 2024 and October 1, 2023, respectively. The amortization expense of amortizable intangible assets included in the cost of products sold was $3.4 billion for both the fiscal nine months ended September 29, 2024 and October 1, 2023, respectively. Intangible asset write-downs are included in Other (income) expense, net.

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

(Dollars in Millions)
2024	2025	2026	2027	2028
$4,500	3,900	3,300	2,700	2,000

See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures.