Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Goodwill

The components and changes in the carrying amount of goodwill follow:

(MILLIONS OF DOLLARS)	PRIMARY CARE			SPECIALTY CARE AND ONCOLOGY			ESTABLISHED PRODUCTS AND EMERGING MARKETS			ANIMAL HEALTH AND CONSUMER HEALTHCARE			NUTRITION		OTHER(a)			TOTAL
Balance, January 1, 2010(b)		$3,272			$  9,010			$  9,883			$   154			$  —		$ 20,038			$42,357
Additions(c)		11			29			32			19			—		2,163			2,254
Other(d)		(71	)		(195	)		(214	)		(14	)		—		(189	)		(683)
Allocation of other goodwill		2,838			7,815			8,573			2,290			496		(22,012	)		—
Balance, December 31, 2010(b)		6,050			16,659			18,274			2,449			496		—			43,928
Additions(e)		129			300			321			55			—		—			805
Other(d)		50			138			151			(7	)		2		—			334
Balance, December 31, 2011		$6,229			$17,097			$18,746			$2,497			$498		$        —			$45,067

^(a)  The Other goodwill related to our acquisition of Wyeth and was unallocated and subject to change until we completed the recording of the assets acquired and liabilities assumed (see Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisition of Wyeth).

^(b)  Beginning in the first quarter of 2011, our Company is managed through five operating segments, as shown in the table above (see also Note 18. Segment, Product and Geographic Area Information for further discussion about the change in management approach). As part of the change, we have retrospectively presented goodwill according to the new operating segment structure.

^(c)  Primarily reflects the impact of measurement period adjustments related to Wyeth (see Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisition of Wyeth).

^(d)  Primarily reflects the impact of foreign exchange.

^(e)  Primarily reflects the acquisition of King (see Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisition of King Pharmaceuticals, Inc.).

Schedule of Finite Lived And Indefinite Lived Intangible Assets

The components of identifiable intangible assets follow:

	AS OF DECEMBER 31,
	2011						2010
(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)		$73,088		$(32,013)		$41,075		$68,432		$(26,223)		$42,209
Brands		1,678		(687)		991		1,626		(607)		1,019
License agreements		425		(215)		210		637		(248)		389
Other		623		(362)		261		533		(324)		209
Total finite-lived intangible assets		75,814		(33,277)		42,537		71,228		(27,402)		43,826
Indefinite-lived intangible assets:
Brands		10,027		—		10,027		10,219		—		10,219
In-process research and development(a)		1,197		—		1,197		3,438		—		3,438
Trademarks		72		—		72		72		—		72
Total indefinite-lived intangible assets		11,296		—		11,296		13,729		—		13,729
Total identifiable intangible assets(b)		$87,110		$(33,277)		$53,833		$84,957		$(27,402)		$57,555

^(a)  In the fourth quarter of 2011, Prevenar 13 Adult and Vyndaqel (tafamidis meglumine) received regulatory approval in a major market, and as a result, we reclassified these assets, with a combined book value of approximately $2.3 billion, from IPR&D to Developed Technology Rights and began to amortize the assets.

^(b)  The decrease is primarily related to amortization and impairment charges (see Note 4. Other Deductions—Net), partially offset by assets acquired as part of the acquisition of King (see Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisition of King Pharmaceuticals, Inc.) and the impact of foreign exchange.

Schedule of Annual Amortization Expense Expected

The annual amortization expense expected for the years 2012 through 2016 follows:

(MILLIONS OF DOLLARS)	2012		2013		2014		2015		2016
Amortization expense	$	5,350	$	4,856	$	4,150	$	3,741	$	3,494