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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
NOTE C – GOODWILL AND OTHER INTANGIBLE ASSETS

The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated goodwill impairment charges are as follows:
 As of December 31, 2022As of December 31, 2021
(in millions)Gross Carrying AmountAccumulated
Amortization/
Write-offs
Gross Carrying AmountAccumulated
Amortization/
Write-offs
Technology-related$12,397 $(7,378)$11,957 $(6,754)
Patents486 (394)494 (398)
Other intangible assets1,960 (1,400)1,900 (1,325)
Amortizable intangible assets$14,843 $(9,173)$14,351 $(8,476)
Goodwill$22,820 $(9,900)$21,888 $(9,900)
IPR&D112 126 
Technology-related120 120 
Indefinite-lived intangible assets$232 $246 

The increase in our balance of goodwill and amortizable intangible assets is related primarily to our acquisition of Baylis Medical completed in the first quarter of 2022.

Intangible asset impairment charges were $132 million in 2022, $370 million in 2021 and $460 million in 2020. The impairment charges recorded in 2022 were primarily associated with amortizable technology-related intangible assets that were initially established following our acquisition of Vertiflex, Inc., which is now part of our Neuromodulation business, resulting from lower revenue projections due to reimbursement challenges. The impairment charges recorded in 2021 were primarily associated with amortizable technology-related intangible assets that were initially established following our acquisition of VENITI, Inc., which is now part of our Peripheral Interventions business. These charges resulted from management’s decision
to discontinue commercialization of the VICI VENOUS STENT™ System following a voluntary recall, due to cost to remediate and time to return to market. In addition, during 2021, we impaired the IPR&D assets established in connection with our acquisition of Millipede, Inc. which is now part of our Cardiology business. The charges resulted from the cancellation of the mitral valve IPR&D program due to the incremental time and cost required to complete the program and bring the technology to market. The impairment charges recorded in 2020 were primarily associated with intangible assets established in connection with our acquisitions of Sadra Medical, Inc., Apama Medical Inc. and nVision Medical Corporation (nVision). Each of these impairment charges were recorded following management’s decision to cancel the programs due to the length of time, and remaining cost to complete and commercialize the technology, the cost to remediate quality issues or, specific to nVision, our understanding of the clinical evidence necessary to commercialize the technology.

The following represents our goodwill balance by reportable segment.
(in millions)MedSurgCardiovascularTotal
Balance as of December 31, 2020$3,707 $6,243 $9,951 
Goodwill acquired544 1,520 2,064 
Foreign currency fluctuations and other changes(5)(21)(27)
Balance as of December 31, 2021$4,246 $7,741 $11,988 
Goodwill acquired— 1,030 1,030 
Foreign currency fluctuations and other changes(10)(88)(98)
Balance as of December 31, 2022$4,237 $8,684 $12,920 

In the first quarter of 2022, we reorganized our operational structure in order to strengthen our category leadership in the markets we serve and, in particular, benefit our Cardiology customers and patients. Following the reorganization, we have aggregated our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. We have revised prior periods to conform to the current year presentation. There was no impact to the reporting units identified for purposes of our annual goodwill impairment testing.

In the second quarter of 2022, we performed our annual goodwill impairment test utilizing both the qualitative and quantitative approach described in FASB ASC Topic 350. The qualitative approach was used for testing reporting units where fair value has historically exceeded carrying value by greater than 100 percent, and all other reporting units were tested using the quantitative approach. We determined that the fair value of each reporting unit exceeded its carrying value and concluded that goodwill was not impaired or at risk of impairment.

Refer to Note A – Significant Accounting Policies for further discussion of our goodwill and intangible asset impairment testing.

Estimated Amortization expense for each of the five succeeding fiscal years based upon our amortizable intangible asset portfolio, consisting of intangible assets acquired in a business combination or asset acquisition, as well as internally developed patents, as of December 31, 2022 is as follows (in millions):
Fiscal Year
2023$781 
2024741 
2025683 
2026665 
2027625 
These estimates do not include amortization expense associated with future acquisitions that have been announced but not yet completed as of December 31, 2022.