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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS In our annual impairment tests of goodwill as of October 31, 2024 and 2023 we performed a quantitative assessment of the Spine reporting unit using a discounted cash flow analysis to estimate the fair value. Significant inputs to the analysis included assumptions for future revenue growth and operating margin. The analysis also included a rate to discount the estimated future cash flow projections to their present value based on the reporting unit’s estimated weighted average cost of capital. In 2024 the carrying value of the Spine reporting unit exceeded its fair value and a charge of $273 was recognized in goodwill and other impairments in the Consolidated Statements of Earnings. The impairment charge for the Spine reporting unit was driven by a decrease in future product demand due to the competitive environment and an increase in the Spine reporting unit’s weighted average cost of capital. Subsequent to the annual goodwill impairment test management committed to a plan to sell certain assets associated with the Spinal Implants business (disposal group). Goodwill was allocated to the disposal group based on the relative fair values of the disposal group and the portion of the Spine reporting unit that will be retained. Goodwill allocated to the disposal group was tested for impairment which resulted in an impairment charge of $183 recognized in goodwill and other impairments. Refer to Note 16 for additional information on the assets classified as held for sale. For our annual impairment test in 2023 we also elected to perform a quantitative assessment. As a result of that assessment we concluded that the goodwill of the Spine reporting unit was not impaired in 2023. For our other reporting units, we considered qualitative indicators of impairment as it was considered more likely than not that the fair values of those reporting units exceeded their respective carrying values. No impairment was identified for those reporting units in 2024 or 2023. Future changes in the judgments, assumptions and estimates that are used in our impairment testing for goodwill, including discount and tax rates and future cash flow projections, could result in significantly different estimates of the fair values. A significant reduction in the estimated fair values could result in impairment charges that could materially affect our results of operations. Goodwill of $117 previously reported within Orthopaedics was reclassified to MedSurg and Neurotechnology to reflect the reclassification of the interventional spine reporting unit from Orthopaedics to MedSurg and Neurotechnology to align with certain updates in our internal reporting structure. Goodwill recorded in the first three quarters of 2024 related to interventional spine is presented in the additions and adjustments line within MedSurg and Neurotechnology.
Changes in the Net Carrying Value of Goodwill by Segment
| MedSurg and Neurotechnology | Orthopaedics | Total
2022 | $ | 7,935 |  | $ | 6,945 |  | $ | 14,880 |
Additions and adjustments | 301 |  | — |  | 301 |
Foreign exchange and other | 34 |  | 28 |  | 62 |
2023 | $ | 8,270 |  | $ | 6,973 |  | $ | 15,243 |
Goodwill impairment | — |  | (456) |  | (456) |
Additions and adjustments | 852 |  | 300 |  | 1,152 |
Foreign exchange and other | 86 |  | (170) |  | (84) |
2024 | $ | 9,208 |  | $ | 6,647 |  | $ | 15,855 |
Summary of Other Intangible Assets
|  | Gross Carrying Amount | Less Accumulated Amortization | Net Carrying Amount
Developed technologies
2024 |  | $ | 5,698 |  | $ | 2,931 |  | $ | 2,767 |
2023 |  | 5,769 |  | 2,815 |  | 2,954 |
Customer relationships
2024 |  | $ | 3,055 |  | $ | 1,636 |  | $ | 1,419 |
2023 |  | 2,907 |  | 1,504 |  | 1,403 |
Patents
2024 |  | $ | 153 |  | $ | 136 |  | $ | 17 |
2023 |  | 329 |  | 302 |  | 27 |
Trademarks
2024 |  | $ | 413 |  | $ | 256 |  | $ | 157 |
2023 |  | 427 |  | 246 |  | 181 |
In-process research and development
2024 |  | $ | 34 |  | $ | — |  | $ | 34 |
2023 |  | 21 |  | — |  | 21 |
Other
2024 |  | $ | 63 |  | $ | 62 |  | $ | 1 |
2023 |  | 96 |  | 89 |  | 7 |
Total
2024 |  | $ | 9,416 |  | $ | 5,021 |  | $ | 4,395 |
2023 |  | 9,549 |  | 4,956 |  | 4,593 |
Estimated Amortization Expense
2025 | 2026 | 2027 | 2028 | 2029
$ | 605 |  | $ | 550 |  | $ | 528 |  | $ | 480 |  | $ | 465 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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