|
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:
|
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|
| (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 |
|
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|
$ — |
|
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|
$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:
|
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|
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:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
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