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Identifiable Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
The following table provides the components of Identifiable intangible assets:
 
 
December 31, 2017
 
December 31, 2016
(MILLIONS OF DOLLARS)
 
Gross
Carrying
Amount

 
Accumulated
Amortization

 
Identifiable
Intangible
Assets, less
Accumulated
Amortization

 
Gross
Carrying
Amount

 
Accumulated
Amortization

 
Identifiable
Intangible
Assets, less
Accumulated
Amortization

Finite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
Developed technology rights(a)
 
$
89,550

 
$
(54,785
)
 
$
34,765

 
$
83,390

 
$
(49,650
)
 
$
33,740

Brands
 
2,134

 
(1,152
)
 
982

 
2,092

 
(1,032
)
 
1,060

Licensing agreements and other
 
1,911

 
(1,096
)
 
815

 
1,869

 
(1,005
)
 
864

 
 
93,595

 
(57,033
)
 
36,562

 
87,351

 
(51,687
)
 
35,664

Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
Brands and other
 
6,929

 


 
6,929

 
6,883

 


 
6,883

IPR&D(a)
 
5,249

 


 
5,249

 
10,101

 


 
10,101

 
 
12,179

 


 
12,179

 
16,984

 


 
16,984

Identifiable intangible assets(b)
 
$
105,774

 
$
(57,033
)
 
$
48,741

 
$
104,335

 
$
(51,687
)
 
$
52,648

(a) 
The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect (i) the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, (ii) the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A), (iii) the Developed technology rights of $371 million recorded in connection with the EU and U.S. approvals of Besponsa (see Note 7E), (iv) the Developed technology rights of $364 million recorded in connection with the U.S. approval of Bosulif (see Note 7E) and (v) the Developed technology rights of $140 million recorded in connection with the approvals of Bavencio (see Note 2C) partially offset by (vi) measurement period adjustments related to Medivation (see Note 2A) and (vii) impairments of Developed technology rights (see Note 4).
(b) 
The decrease in Identifiable intangible assets, less accumulated amortization, is primarily due to (i) amortization, (ii) measurement period adjustments related to Medivation (see Note 2A), as well as (iii) impairments of Developed technology rights (see Note 4), partially offset by (iv) assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A), (v) the assets recorded in connection with the EU and U.S. approvals of Besponsa and in connection with the U.S. approval of Bosulif (see Note 7E) and (vi) the assets recorded in connection with the approvals of Bavencio (see Note 2C).
Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization:
 
 
December 31, 2017
 
 
IH
 
EH
 
WRD
Developed technology rights
 
68
%
 
31
%
 
—

Brands, finite-lived
 
75
%
 
25
%
 
—

Brands, indefinite-lived
 
71
%
 
29
%
 
—

IPR&D
 
81
%
 
12
%
 
7
%
Schedule of Indefinite-Lived Intangible Assets
The following table provides the components of Identifiable intangible assets:
 
 
December 31, 2017
 
December 31, 2016
(MILLIONS OF DOLLARS)
 
Gross
Carrying
Amount

 
Accumulated
Amortization

 
Identifiable
Intangible
Assets, less
Accumulated
Amortization

 
Gross
Carrying
Amount

 
Accumulated
Amortization

 
Identifiable
Intangible
Assets, less
Accumulated
Amortization

Finite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
Developed technology rights(a)
 
$
89,550

 
$
(54,785
)
 
$
34,765

 
$
83,390

 
$
(49,650
)
 
$
33,740

Brands
 
2,134

 
(1,152
)
 
982

 
2,092

 
(1,032
)
 
1,060

Licensing agreements and other
 
1,911

 
(1,096
)
 
815

 
1,869

 
(1,005
)
 
864

 
 
93,595

 
(57,033
)
 
36,562

 
87,351

 
(51,687
)
 
35,664

Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
Brands and other
 
6,929

 


 
6,929

 
6,883

 


 
6,883

IPR&D(a)
 
5,249

 


 
5,249

 
10,101

 


 
10,101

 
 
12,179

 


 
12,179

 
16,984

 


 
16,984

Identifiable intangible assets(b)
 
$
105,774

 
$
(57,033
)
 
$
48,741

 
$
104,335

 
$
(51,687
)
 
$
52,648

(a) 
The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect (i) the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, (ii) the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A), (iii) the Developed technology rights of $371 million recorded in connection with the EU and U.S. approvals of Besponsa (see Note 7E), (iv) the Developed technology rights of $364 million recorded in connection with the U.S. approval of Bosulif (see Note 7E) and (v) the Developed technology rights of $140 million recorded in connection with the approvals of Bavencio (see Note 2C) partially offset by (vi) measurement period adjustments related to Medivation (see Note 2A) and (vii) impairments of Developed technology rights (see Note 4).
(b) 
The decrease in Identifiable intangible assets, less accumulated amortization, is primarily due to (i) amortization, (ii) measurement period adjustments related to Medivation (see Note 2A), as well as (iii) impairments of Developed technology rights (see Note 4), partially offset by (iv) assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A), (v) the assets recorded in connection with the EU and U.S. approvals of Besponsa and in connection with the U.S. approval of Bosulif (see Note 7E) and (vi) the assets recorded in connection with the approvals of Bavencio (see Note 2C).
Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization:
 
 
December 31, 2017
 
 
IH
 
EH
 
WRD
Developed technology rights
 
68
%
 
31
%
 
—

Brands, finite-lived
 
75
%
 
25
%
 
—

Brands, indefinite-lived
 
71
%
 
29
%
 
—

IPR&D
 
81
%
 
12
%
 
7
%
Schedule of Expected Amortization Expense
The following table provides the annual amortization expense expected for the years 2018 through 2022:
(MILLIONS OF DOLLARS)
 
2018

 
2019

 
2020

 
2021

 
2022

Amortization expense
 
$
4,798

 
$
4,592

 
$
3,569

 
$
3,474

 
$
3,223
Schedule of Goodwill
The following table provides the components of and changes in the carrying amount of Goodwill:
(MILLIONS OF DOLLARS)
 
IH

 
EH

 
Total

Balance, January 1, 2016
 
$
23,809

 
$
24,433

 
$
48,242

Additions(a)
 
6,357

 
12

 
6,369

Other(b)
 
(32
)
 
(130
)
 
(162
)
Balance, December 31, 2016
 
30,134

 
24,315

 
54,449

Additions(c)
 
572

 
92

 
664

Other(d)
 
435

 
404

 
840

Balance, December 31, 2017
 
$
31,141

 
$
24,811

 
$
55,952

(a) 
IH additions primarily relate to our acquisitions of Medivation, Anacor and Bamboo (see Note 2A).
(b) 
Primarily reflects the impact of foreign exchange and, with respect to EH, the impact of the reclassification of $119 million to Assets held for sale during 2016 (see Note 2B).
(c) 
IH additions primarily represent measurement period adjustments related to our Medivation acquisition, and EH additions relate to our acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A).
(d) 
Primarily reflects the impact of foreign exchange and an adjustment of our estimate of goodwill associated with the HIS net assets sold.