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Goodwill and Other Intangibles | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill Goodwill results from excess consideration in a business combination over the fair value of identifiable net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually, or more frequently if impairment indicators are present, by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If we conclude it is more likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair value to its carrying value is performed to determine the amount of any impairment. The changes in goodwill during 2020 and 2019 were primarily related to our acquisitions of Dermira and Loxo, respectively. See Note 3 for further discussion. No impairments occurred with respect to the carrying value of goodwill for the years ended December 31, 2020, 2019, and 2018. Other Intangibles The components of intangible assets other than goodwill at December 31 were as follows:
| 2020 |  | 2019
Description | Carrying Amount, Gross |  | Accumulated Amortization |  | Carrying Amount, Net |  | Carrying Amount, Gross |  | Accumulated Amortization |  | Carrying Amount, Net
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Marketed products | $ | 7,984.0 |  |  | $ | (1,659.5) |  |  | $ | 6,324.5 |  |  | $ | 3,150.2 |  |  | $ | (1,244.6) |  |  | $ | 1,905.6 |
Other | 92.8 |  |  | (68.3) |  |  | 24.5 |  |  | 94.2 |  |  | (51.8) |  |  | 42.4 |
Total finite-lived intangible assets | 8,076.8 |  |  | (1,727.8) |  |  | 6,349.0 |  |  | 3,244.4 |  |  | (1,296.4) |  |  | 1,948.0 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Acquired IPR&D | 1,101.0 |  |  | — |  |  | 1,101.0 |  |  | 4,670.0 |  |  | — |  |  | 4,670.0 |
Other intangibles | $ | 9,177.8 |  |  | $ | (1,727.8) |  |  | $ | 7,450.0 |  |  | $ | 7,914.4 |  |  | $ | (1,296.4) |  |  | $ | 6,618.0 |
Marketed products consist of the amortized cost of the rights to assets acquired in business combinations and approved for marketing in a significant global jurisdiction (U.S., Europe, and Japan) and capitalized milestone payments. For transactions other than a business combination, we capitalize milestone payments incurred at or after the product has obtained regulatory approval for marketing. Other finite-lived intangible assets consist primarily of the amortized cost of licensed platform technologies that have alternative future uses in research and development, manufacturing technologies, and customer relationships from business combinations. Acquired IPR&D consists of the fair values of acquired IPR&D projects acquired in business combination, adjusted for subsequent impairments, if any. The costs of acquired IPR&D projects acquired directly in a transaction other than a business combination are capitalized as other intangible assets if the projects have an alternative future use; otherwise, they are expensed immediately. See Note 3 for acquired IPR&D projects that had no alternative future use. Several methods may be used to determine the estimated fair value of other intangibles acquired in a business combination. We utilize the “income method,” which is a Level 3 fair value measurement and applies a probability weighting that considers the risk of development and commercialization to the estimated future net cash flows that are derived from projected revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products, analyst expectations, and expected industry trends. The estimated future net cash flows are then discounted to the present value using an appropriate discount rate. This analysis is performed for each asset independently. The acquired IPR&D assets are treated as indefinite-lived intangible assets until completion or abandonment of the projects, at which time the assets are tested for impairment and amortized over the remaining useful life or written off, as appropriate. The increase in marketed products and the decrease in acquired IPR&D in 2020 primarily relates to the reclassification of our $4.60 billion intangible asset for selpercatinib (Retevmo) from indefinite-lived to finite-lived as it was approved by the FDA in the second quarter of 2020. This decrease in acquired IPR&D in 2020 was partially offset by the addition of acquired IPR&D for lebrikizumab as a result of the Dermira acquisition. The increases in marketed products and acquired IPR&D intangible assets in 2019 were primarily related to our acquisition of Loxo. See Note 3 for further discussion of intangible assets acquired in recent business combinations and Note 4 for additional discussion of recent capitalized milestone payments. Indefinite-lived intangible assets are reviewed for impairment at least annually, or more frequently if impairment indicators are present, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If we conclude it is more likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair value of the intangible asset to its carrying value is performed to determine the amount of any impairment. Finite-lived intangible assets are reviewed for impairment when an indicator of impairment is present. When required, a comparison of fair value to the carrying amount of assets is performed to determine the amount of any impairment. When determining the fair value of indefinite-lived acquired IPR&D as well as the fair value of finite-lived intangible assets for impairment testing purposes, we utilize the "income method" discussed above. Intangible assets with finite lives are capitalized and are amortized over their estimated useful lives, ranging from three to 20 years. As of December 31, 2020, the remaining weighted-average amortization period for finite-lived intangible assets was approximately 15 years. Amortization expense related to finite-lived intangible assets was as follows:
| 2020 |  | 2019 |  | 2018
Amortization expense | $ | 428.2 |  |  | $ | 225.8 |  |  | $ | 361.3 |
The estimated amortization expense for each of the next five years associated with our finite-lived intangible assets as of December 31, 2020 is as follows:
| 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025
Estimated amortization expense | $ | 517.7 |  |  | $ | 513.0 |  |  | $ | 501.2 |  |  | $ | 449.1 |  |  | $ | 432.5 |
Amortization expense is included in either cost of sales, marketing, selling, and administrative or research and development depending on the nature of the intangible asset being amortized.

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