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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2022
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, 2020$33,124 
Additions(a)
177 
Measurement period adjustments(b)
(564)
Foreign currency translation adjustments and other(358)
Balance as of December 31, 202132,379 
Additions(c)
92 
Foreign currency translation adjustments and other(315)
Balance as of December 31, 2022$32,156 
(a)Goodwill additions related to the acquisition of Soliton in the fourth quarter of 2021 (see Note 5).
(b)Measurement period adjustments recorded in 2021 related to the acquisition of Allergan (see Note 5).
(c)Goodwill additions related to the acquisition of DJS in the fourth quarter of 2022 (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, 2022 and 2021, there were no accumulated goodwill impairment losses.
Intangible Assets, Net
The following table summarizes intangible assets:
20222021
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$87,698 $(25,003)$62,695 $88,945 $(18,463)$70,482 
License agreements8,474 (4,642)3,832 8,487 (3,688)4,799 
Total definite-lived intangible assets96,172 (29,645)66,527 97,432 (22,151)75,281 
Indefinite-lived intangible assets912 — 912 670 — 670 
Total intangible assets, net$97,084 $(29,645)$67,439 $98,102 $(22,151)$75,951 
Definite-Lived Intangible Assets
In September 2022, the company made a strategic decision to reduce ongoing sales and marketing investment related to Vuity, an on-market product to treat presbyopia. This strategic decision contributed to a significant decrease in the estimated future cash flows for the product and represented a triggering event which required the company to evaluate the underlying definite lived-intangible asset for impairment. The company utilized a discounted cash flow analysis to estimate the fair value of the intangible asset resulting in a full impairment of both the gross and net carrying amount. Based on the revised cash flows, the company recorded a pre-tax impairment charge of $770 million to cost of products sold in the consolidated statement of earnings for the third quarter of 2022.
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 2022, $7.7 billion in 2021 and $5.8 billion in 2020 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, 2022 is as follows:
(in billions)20232024202520262027
Anticipated annual amortization expense$7.7 $7.9 $8.0 $7.3 $5.8 
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, 2022 primarily relate to the acquisitions of Allergan and DJS.
The company performs its annual impairment assessment of indefinite-lived intangible assets in the third quarter, or earlier if impairment indicators exist.