Intangible Assets and Goodwill

3 Months Ended

Apr. 04, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Intangible assets that have finite useful lives are amortized over their estimated useful lives. The latest annual impairment assessment of goodwill and indefinite lived intangible assets was completed in the fiscal fourth quarter of 2020. Future impairment tests for goodwill and indefinite lived intangible assets will be performed annually in the fiscal fourth quarter, or sooner, if warranted.


(Dollars in Millions)	April 4, 2021		January 3, 2021
Intangible assets with definite lives:
Patents and trademarks — gross	$	39,505	39,990
Less accumulated amortization	18,006		17,618
Patents and trademarks — net	21,499		22,372
Customer relationships and other intangibles — gross	22,793		22,898
Less accumulated amortization	11,031		10,912
Customer relationships and other intangibles — net*	11,762		11,986
Intangible assets with indefinite lives:
Trademarks	7,061		7,195
Purchased in-process research and development	10,788		11,849
Total intangible assets with indefinite lives	17,849		19,044
Total intangible assets — net	$	51,110	53,402

*The majority is comprised of customer relationships

Goodwill as of April 4, 2021 was allocated by segment of business as follows:


(Dollars in Millions)	Consumer Health		Pharmaceutical	Medical Devices	Total
Goodwill at January 3, 2021	$	10,336	11,009	15,048	36,393
Goodwill, related to acquisitions and divestitures	—		—	—	—

Currency translation/Other	(310)		(262)	(133)	(705)
Goodwill at April 4, 2021	$	10,026	10,747	14,915	35,688

The weighted average amortization period for patents and trademarks is 12 years. The weighted average amortization period for customer relationships and other intangible assets is 21 years. The amortization expense of amortizable intangible assets included in cost of products sold was $1.2 billion and $1.1 billion for the fiscal first quarters ended April 4, 2021 and March 29, 2020, respectively. Intangible asset write-downs are included in Other (income) expense, net.

The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately:


(Dollars in Millions)
2021	2022	2023	2024	2025
$4,600	4,400	4,300	4,100	3,300

See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures.