v3.20.4
Identifiable Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
The following summarizes the components of Identifiable intangible assets:
 As of December 31, 2020As of 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)
$73,545 $(50,902)$22,643 $72,449 $(47,092)$25,357 
Brands922 (774)148 922 (741)181 
Licensing agreements and other(b)
2,292 (1,186)1,106 1,687 (1,108)579 
76,759 (52,862)23,896 75,058 (48,941)26,117 
Indefinite-lived intangible assets
Brands827 827 827 827 
IPR&D(c)
3,175 3,175 5,919 5,919 
Licensing agreements and other(b)
573 573 1,073 1,073 
4,575 4,575 7,819 7,819 
Identifiable intangible assets(d)
$81,334 $(52,862)$28,471 $82,877 $(48,941)$33,936 
(a)The increase in the gross carrying amount primarily reflects 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 mCRC after prior therapy, as well as a $499 million capitalized portion of an upfront payment to Myovant (see Note 2E) and an increase from a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A), partially offset by a $528 million impairment of Eucrisa (see Note 4) and a $263 million impairment of certain generic sterile injectables acquired in connection with our acquisition of Hospira (see Note 4).
(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 decrease in the gross carrying amount primarily reflects a decrease from 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 mCRC after prior therapy.
(d)The decrease is primarily due to amortization, impairments, and measurement period adjustments related to the acquisition of Array, partially offset by the capitalization of an upfront payment to Myovant (see Note 2E).
Schedule of Indefinite-Lived Intangible Assets
The following summarizes the components of Identifiable intangible assets:
 As of December 31, 2020As of 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)
$73,545 $(50,902)$22,643 $72,449 $(47,092)$25,357 
Brands922 (774)148 922 (741)181 
Licensing agreements and other(b)
2,292 (1,186)1,106 1,687 (1,108)579 
76,759 (52,862)23,896 75,058 (48,941)26,117 
Indefinite-lived intangible assets
Brands827 827 827 827 
IPR&D(c)
3,175 3,175 5,919 5,919 
Licensing agreements and other(b)
573 573 1,073 1,073 
4,575 4,575 7,819 7,819 
Identifiable intangible assets(d)
$81,334 $(52,862)$28,471 $82,877 $(48,941)$33,936 
(a)The increase in the gross carrying amount primarily reflects 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 mCRC after prior therapy, as well as a $499 million capitalized portion of an upfront payment to Myovant (see Note 2E) and an increase from a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A), partially offset by a $528 million impairment of Eucrisa (see Note 4) and a $263 million impairment of certain generic sterile injectables acquired in connection with our acquisition of Hospira (see Note 4).
(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 decrease in the gross carrying amount primarily reflects a decrease from 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 mCRC after prior therapy.
(d)The decrease is primarily due to amortization, impairments, and measurement period adjustments related to the acquisition of Array, partially offset by the capitalization of an upfront payment to Myovant (see Note 2E).
Schedule of Expected Amortization Expense
The following provides the expected annual amortization expense:
(MILLIONS OF DOLLARS)20212022202320242025
Amortization expense$3,372 $3,249 $2,921 $2,642 $2,492 
Schedule of Goodwill
The following summarizes the components and changes in the carrying amount of Goodwill:
(MILLIONS OF DOLLARS)Total
Balance, January 1, 2019
$42,927 
Additions(a)
5,411 
Other(b)
(136)
Balance, December 31, 2019
48,202 
Additions(c)
727 
Other(b)
648 
Balance, December 31, 2020
$49,577 
(a)Additions relate to our acquisition of Array (see Note 2A).
(b)Other represents the impact of foreign exchange.
(c)Additions primarily represent the impact of measurement period adjustments related to our Array acquisition (see Note 2A).