Goodwill and Other Intangible Assets

9 Months Ended

Sep. 27, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a rollforward of the Company’s goodwill ($ in millions):


Balance, December 31, 2023	$	41,608
Attributable to 2024 acquisitions	280

Adjustments due to finalization of purchase price allocations	(25)
Foreign currency translation and other	310
Balance, September 27, 2024	$	42,173

The carrying value of goodwill by segment is summarized as follows ($ in millions):


	September 27, 2024		December 31, 2023
Biotechnology	$	22,533	$	22,477
Life Sciences	12,708		12,221
Diagnostics	6,932		6,910
Total	$	42,173	$	41,608

The Company reviews identified intangible assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

During the third quarter of 2024, the Company concluded that it had an impairment indicator for an indefinite-lived trade name within the genomics consumable business included in the Life Sciences segment. This determination was primarily the result of softness in the genomics market, including but not limited to the discontinuation of drug development programs announced in the third quarter and weaker demand at some of the business’s larger customers as well as reduced demand due to the reprioritization of drug development programs at other customers. The Company engaged a third-party valuation specialist to assist in the valuation of the trade name using a relief from royalty method of valuation. The significant assumptions in the relief from royalty method include, but were not limited to, revenue growth rates (including perpetual growth rates), royalty rates and discount rates. The Company recorded a non-cash impairment charge of $222 million pretax ($169 million after-tax) related to the indefinite-lived trade name for the three and nine-months ended September 27, 2024, which is included in selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings. After recognition of the impairment, the net book value of the trade name was $508 million as of September 27, 2024, and the Company continues to monitor for any changes to the business performance or key assumptions. In connection with the trade name impairment, the Company also tested the related asset group and the related reporting unit goodwill for impairment as of September 27, 2024, and in both cases the Company identified no impairment.

The Company has not identified any other “triggering” events which indicate an impairment of goodwill in 2024.

Additionally, the Company identified impairment triggers in the second quarter of 2023 which resulted in impairment charges of certain long-lived assets, including technology and other assets. In the nine-month period ended September 29, 2023, the Company recorded impairment charges of $28 million related to these long-lived assets and $14 million related to a facility, which total $42 million pretax ($32 million after-tax).