Identifiable Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 27, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following summarizes the components of Identifiable intangible assets:
	September 27, 2020						December 31, 2019
(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)	$	90,052	$	(66,212)	$	23,840	$	88,730	$	(63,106)	$	25,625
Brands	922		(766)		156		922		(741)		181
Licensing agreements and other(b)	2,385		(1,238)		1,146		1,772		(1,191)		582
	93,358		(68,216)		25,142		91,425		(65,037)		26,387
Indefinite-lived intangible assets
Brands	1,991				1,991		1,991				1,991
IPR&D(c)	3,221				3,221		5,919				5,919
Licensing agreements and other(b)	573				573		1,073				1,073
	5,785				5,785		8,983				8,983
Identifiable intangible assets(d)	$	99,143	$	(68,216)	$	30,927	$	100,408	$	(65,037)	$	35,370

(a)The change in the gross carrying amount primarily reflect the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux® (cetuximab), for the treatment of BRAFV600E-mutant metastatic colorectal cancer after prior therapy and a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A).

(b)The changes in the gross carrying amounts primarily reflect the transfer of $600 million from Indefinite-lived Licensing agreements and other to finite-lived Licensing agreements and other to reflect the approval in the U.S. of several products subject to out-licensing arrangements acquired from Array, as well as measurement period adjustments related to the acquisition of Array.

(c)The changes in the gross carrying amount primarily reflect a $1.2 billion measurement period adjustment related to the acquisition of Array, a $900 million impairment of IPR&D (see Note 4), and the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux® (cetuximab), for the treatment of BRAFV600E-mutant metastatic colorectal cancer after prior therapy.

(d)The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array.

Schedule of Indefinite Lived Intangible Assets

The following summarizes the components of Identifiable intangible assets:
	September 27, 2020						December 31, 2019
(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)	$	90,052	$	(66,212)	$	23,840	$	88,730	$	(63,106)	$	25,625
Brands	922		(766)		156		922		(741)		181
Licensing agreements and other(b)	2,385		(1,238)		1,146		1,772		(1,191)		582
	93,358		(68,216)		25,142		91,425		(65,037)		26,387
Indefinite-lived intangible assets
Brands	1,991				1,991		1,991				1,991
IPR&D(c)	3,221				3,221		5,919				5,919
Licensing agreements and other(b)	573				573		1,073				1,073
	5,785				5,785		8,983				8,983
Identifiable intangible assets(d)	$	99,143	$	(68,216)	$	30,927	$	100,408	$	(65,037)	$	35,370

(a)The change in the gross carrying amount primarily reflect the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux® (cetuximab), for the treatment of BRAFV600E-mutant metastatic colorectal cancer after prior therapy and a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A).

(b)The changes in the gross carrying amounts primarily reflect the transfer of $600 million from Indefinite-lived Licensing agreements and other to finite-lived Licensing agreements and other to reflect the approval in the U.S. of several products subject to out-licensing arrangements acquired from Array, as well as measurement period adjustments related to the acquisition of Array.

(c)The changes in the gross carrying amount primarily reflect a $1.2 billion measurement period adjustment related to the acquisition of Array, a $900 million impairment of IPR&D (see Note 4), and the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux® (cetuximab), for the treatment of BRAFV600E-mutant metastatic colorectal cancer after prior therapy.

(d)The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array.

Identifiable Intangible Assets as a Percentage of Total Identifiable Intangible Assets Less Accumulated Amortization, By Segment

Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization:
	September 27, 2020
	Biopharma		Upjohn		WRDM
Developed technology rights	99	%	1	%	—
Brands, finite-lived	100	%	—		—
Brands, indefinite-lived	42	%	58	%	—
IPR&D	92	%	—		8	%
Licensing agreements and other, finite-lived	99	%	1	%	1	%
Licensing agreements and other, indefinite-lived	100	%	—		—

Schedule of Goodwill

The following summarizes the components and changes in the carrying amount of Goodwill:
(MILLIONS OF DOLLARS)	Biopharma		Upjohn		Total
Balance, December 31, 2019	$	48,202	$	10,451	$	58,653
Additions(a)	727		—		727
Other(b)	420		102		522
Balance, September 27, 2020	$	49,349	$	10,553	$	59,902

(a)Additions primarily represents the impact of measurement period adjustments related to our Array acquisition (see Note 2A).

(b)Represents the impact of foreign exchange.