Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS AND GOODWILL

The following table summarizes the carrying amount of our Intangible assets, net (in millions):



	December 31,
	2017		2016
Finite-lived intangible assets	$	14,350	$	8,971
Indefinite-lived intangible assets	2,750		—
Total	$	17,100	$	8,971

Finite-Lived Intangible Assets

The following table summarizes our finite-lived intangible assets (in millions):



	December 31, 2017						December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible asset - sofosbuvir	$	10,720	$	2,855	$	7,865	$	10,720	$	2,156	$	8,564
Intangible asset - axicabtagene ciloleucel (DLBCL)	6,200		72		6,128		—		—		—
Intangible asset - Ranexa	688		566		122		688		467		221
Other	546		311		235		455		269		186
Total	$	18,154	$	3,804	$	14,350	$	11,863	$	2,892	$	8,971

Amortization expense related to finite-lived intangible assets, included primarily in Cost of goods sold on our Consolidated Statements of Income, totaled $912 million, $844 million and $826 million in 2017, 2016 and 2015.

As of December 31, 2017, estimated future amortization expense associated with our finite-lived intangible assets is as follows (in millions):



Fiscal Year	Amount
2018	$	1,203
2019	1,088
2020	1,064
2021	1,064
2022	1,064
Thereafter	8,867
Total	$	14,350

Indefinite-Lived Intangible Assets

As of December 31, 2017, we had indefinite-lived intangible assets of $2,750 million, which consisted of the purchased IPR&D from our acquisition of Kite. See Note 5, Acquisitions for additional information. In 2016, the estimated fair value of our IPR&D related to momelotinib and simtuzumab was written down to zero due to termination of clinical development of such programs, and as a result, we recorded impairment charges of $432 million within Research and development expenses on our Consolidated Statements of Income.

Goodwill

Upon completing the acquisition of Kite in October 2017, we preliminarily attributed $2,987 million to goodwill on our Consolidated Balance Sheets. The following table summarizes the changes in the carrying amount of goodwill (in millions):



Balance at December 31, 2016	$	1,172
Goodwill resulting from the acquisition of Kite	2,987
Balance at December 31, 2017	$	4,159

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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