Intangible assets and goodwill

12 Months Ended

Dec. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and goodwill

Intangible assets and goodwill

At the end of fiscal years 2024 and 2023, the gross and net amounts of intangible assets were:

(Dollars in Millions)	2024	2023
Intangible assets with definite lives:
Patents and trademarks — gross(1)	$44,695	40,417
Less accumulated amortization	(26,124)	(24,808)
Patents and trademarks — net	$18,571	15,609
Customer relationships and other intangibles — gross	$20,310	20,322
Less accumulated amortization	(13,544)	(12,685)
Customer relationships and other intangibles — net(2)	$6,766	7,637
Intangible assets with indefinite lives:
Trademarks(1)	—	1,714
Purchased in-process research and development	12,281	9,215
Total intangible assets with indefinite lives	$12,281	10,929
Total intangible assets — net	$37,618	34,175

(1)In September 2024, the Company announced changes to its MedTech brand identity and the $1.7 billion of trademarks associated with the DePuy Synthes business were reclassified from indefinite lived to definite lived and will be amortized over a 25 year period.

(2)The majority is comprised of customer relationships

Goodwill as of December 29, 2024 and December 31, 2023, as allocated by segment of business, was as follows:

(Dollars in Millions)	Innovative Medicine	MedTech		Total
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
Goodwill, related to acquisitions	640	7,569		8,209
Goodwill, related to divestitures	—	(56)		(56)
Currency translation/other	(355)	(156)		(511)
Goodwill at December 29, 2024	$10,692	33,508		44,200

*    Includes purchase price allocation adjustments for Abiomed

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 assets included in Cost of products sold was $4.5 billion, $4.5 billion and $3.9 billion before tax, for the fiscal years ended December 29, 2024, December 31, 2023 and January 1, 2023, 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)
2025	2026	2027	2028	2029
$4,000	3,400	2,800	2,200	2,200

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