XML 51 R16.htm IDEA: XBRL DOCUMENT v3.20.1
Goodwill and other intangible assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and other intangible assets Goodwill and other intangible assets
Goodwill
The change in the carrying amount of goodwill was as follows (in millions):
 
Three months ended
March 31, 2020
Beginning balance
$
14,703

Currency translation adjustment
(20
)
Ending balance
$
14,683


Other intangible assets
Other intangible assets consisted of the following (in millions):
 
March 31, 2020
 
December 31, 2019
 
Gross
carrying
amounts
 
Accumulated
amortization
 
Other intangible
assets, net
 
Gross
carrying
amounts
 
Accumulated
amortization
 
Other intangible
assets, net
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Developed-product-technology rights
$
25,549

 
$
(8,876
)
 
$
16,673

 
$
25,575

 
$
(8,322
)
 
$
17,253

Licensing rights
3,746

 
(2,494
)
 
1,252

 
3,761

 
(2,398
)
 
1,363

Marketing-related rights
1,375

 
(979
)
 
396

 
1,382

 
(965
)
 
417

Research and development technology rights
1,269

 
(967
)
 
302

 
1,273

 
(947
)
 
326

Total finite-lived intangible assets
31,939

 
(13,316
)
 
18,623

 
31,991

 
(12,632
)
 
19,359

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
In-process research and development
30

 
—

 
30

 
54

 
—

 
54

Total other intangible assets
$
31,969

 
$
(13,316
)
 
$
18,653

 
$
32,045

 
$
(12,632
)
 
$
19,413


Developed-product-technology rights consists of rights related to marketed products. Licensing rights consists primarily of contractual rights to receive future milestone, royalty and profit-sharing payments; capitalized payments to third parties for milestones related to regulatory approvals to commercialize products; and up-front payments associated with royalty obligations for marketed products. Marketing-related rights consists primarily of rights related to the sale and distribution of marketed products. R&D technology rights pertains to technologies used in R&D that have alternative future uses.
In-process research and development (IPR&D) consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval.
During the three months ended March 31, 2020 and 2019, we recognized amortization associated with our finite-lived intangible assets of $709 million and $315 million, respectively. Amortization of intangible assets is included primarily in Cost of sales in the Condensed Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the remaining nine months ending December 31, 2020, and the years ending December 31, 2021, 2022, 2023, 2024 and 2025, are $2.1 billion, $2.6 billion, $2.5 billion, $2.4 billion, $2.4 billion and $2.2 billion, respectively.