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Goodwill and Other Intangibles | 12 Months Ended
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Dec. 31, 2023
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 change in goodwill during 2023 was primarily related to our acquisition of POINT. See Note 3 for additional information. No impairments occurred with respect to the carrying value of goodwill for the years ended December 31, 2023, 2022, and 2021. Other Intangibles The components of intangible assets other than goodwill at December 31 were as follows:
| 2023 |  | 2022
| Carrying Amount, Gross |  | Accumulated Amortization |  | Carrying Amount, Net |  | Carrying Amount, Gross |  | Accumulated Amortization |  | Carrying Amount, Net
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Marketed products | $ | 8,216.8 |  |  | $ | (2,277.0) |  |  | $ | 5,939.8 |  |  | $ | 7,957.5 |  |  | $ | (2,622.7) |  |  | $ | 5,334.8 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Acquired IPR&D | 966.8 |  |  | — |  |  | 966.8 |  |  | 1,871.8 |  |  | — |  |  | 1,871.8 |
Other intangibles | $ | 9,183.6 |  |  | $ | (2,277.0) |  |  | $ | 6,906.6 |  |  | $ | 9,829.3 |  |  | $ | (2,622.7) |  |  | $ | 7,206.6 |
Marketed products consist primarily 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. 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 significant 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 2023 primarily relates to the reclassification of our $1.03 billion intangible asset for lebrikizumab (Ebglyss) from indefinite-lived to finite-lived as it was approved in Europe in the fourth quarter of 2023. This decrease in acquired IPR&D in 2023 was partially offset by acquired IPR&D assets recognized from the acquisition of POINT. See Note 3 for additional information. 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 primarily to cost of sales over their estimated useful lives, ranging from one to 20 years. As of December 31, 2023, the remaining weighted-average amortization period for finite-lived intangible assets was approximately 12 years. Amortization expense related to finite-lived intangible assets was as follows:
| 2023 |  | 2022 |  | 2021
Amortization expense | $ | 505.6 |  |  | $ | 579.7 |  |  | $ | 628.8 |
The estimated amortization expense for each of the next five years associated with our finite-lived intangible assets as of December 31, 2023 is as follows:
| 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028
Estimated amortization expense | $ | 542.5 |  |  | $ | 530.3 |  |  | $ | 519.7 |  |  | $ | 517.7 |  |  | $ | 511.6 |

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