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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The following table summarizes the changes in the carrying amount of goodwill:
(in millions)
Balance as of December 31, 2019$15,604 
Additions(a)
17,008 
Foreign currency translation adjustments512 
Balance as of December 31, 202033,124 
Additions(b)
177 
Measurement period adjustments(c)
(564)
Foreign currency translation adjustments and other(358)
Balance as of December 31, 2021$32,379 
(a)Goodwill additions related to the acquisition of Allergan in the second quarter of 2020 and the acquisition of Luminera in the fourth quarter of 2020 (see Note 5).
(b)Goodwill additions related to the acquisition of Soliton in the fourth quarter of 2021 (see Note 5).
(c)Measurement period adjustments recorded in 2021 related to the acquisition of Allergan (see Note 5).
The company performs its annual goodwill impairment assessment in the third quarter, or earlier if impairment indicators exist. As of December 31, 2021, there were no accumulated goodwill impairment losses.
Intangible Assets, Net
The following table summarizes intangible assets:
20212020
as of December 31 (in millions)Gross
 carrying
 amount		Accumulated
 amortization		Net
 carrying
 amount		Gross
 carrying
 amount		Accumulated
 amortization		Net
 carrying
 amount
Definite-lived intangible assets
Developed product rights$88,945 $(18,463)$70,482 $87,707 $(11,620)$76,087 
License agreements8,487 (3,688)4,799 7,828 (2,916)4,912 
Total definite-lived intangible assets97,432 (22,151)75,281 95,535 (14,536)80,999 
Indefinite-lived research and development670 — 670 1,877 — 1,877 
Total intangible assets, net$98,102 $(22,151)$75,951 $97,412 $(14,536)$82,876 
Definite-Lived Intangible Assets
The increase in definite-lived intangible assets during 2021 was primarily due to the measurement period adjustments from the completion of the valuation of certain license agreements acquired in the Allergan acquisition as well as the acquisition of Soliton. Refer to Note 5 for additional information regarding these acquisitions and related adjustments. In 2021, AbbVie also reclassified $1.0 billion of indefinite-lived research and development intangible assets to developed product rights upon receiving certain regulatory approvals for Vuity, Qulipta, and HArmonyCa.
Definite-lived intangible assets are amortized over their estimated useful lives, which range between 1 to 16 years with an average of 12 years for developed product rights and 11 years for license agreements. Amortization expense was $7.7 billion in 2021, $5.8 billion in 2020 and $1.6 billion in 2019 and was included in cost of products sold in the consolidated statements of earnings. The anticipated annual amortization expense for definite-lived intangible assets recorded as of December 31, 2021 is as follows:
(in billions)20222023202420252026
Anticipated annual amortization expense$7.2 $7.5 $8.0 $8.4 $7.9 
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets represent acquired IPR&D associated with products that have not yet received regulatory approval. Indefinite-lived intangible assets as of December 31, 2021 primarily relate to the acquisition of Allergan.
The company performs its annual impairment assessment of indefinite-lived intangible assets in the third quarter, or earlier if impairment indicators exist.
In 2019, following the announcement of the decision to terminate the rovalpituzumab tesirine (Rova-T) R&D program, the company recorded an impairment charge of $1.0 billion which represented the remaining value of the IPR&D acquired as part of the 2016 Stemcentrx acquisition. The impairment charge was recorded to R&D expense in the consolidated statements of earnings in 2019.