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INTANGIBLE ASSETS | 9 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table summarizes our Intangible assets, net:
|  | September 30, 2023 |  | December 31, 2022
(in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Foreign Currency Translation Adjustment |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Foreign Currency Translation Adjustment |  | Net Carrying Amount
Finite-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intangible asset – sofosbuvir |  | $ | 10,720 |  |  | $ | (6,875) |  |  | $ | — |  |  | $ | 3,845 |  |  | $ | 10,720 |  |  | $ | (6,350) |  |  | $ | — |  |  | $ | 4,370 |
Intangible asset – axicabtagene ciloleucel |  | 7,110 |  |  | (2,213) |  |  | — |  |  | 4,897 |  |  | 7,110 |  |  | (1,908) |  |  | — |  |  | 5,202 |
Intangible asset – Trodelvy(1) |  | 11,730 |  |  | (1,732) |  |  | — |  |  | 9,998 |  |  | 5,630 |  |  | (973) |  |  | — |  |  | 4,657 |
Intangible asset – Hepcludex |  | 845 |  |  | (222) |  |  | — |  |  | 623 |  |  | 845 |  |  | (158) |  |  | — |  |  | 687 |
Other |  | 1,489 |  |  | (822) |  |  | 1 |  |  | 668 |  |  | 1,489 |  |  | (733) |  |  | 1 |  |  | 758 |
Total finite-lived assets |  | 31,894 |  |  | (11,863) |  |  | 1 |  |  | 20,032 |  |  | 25,794 |  |  | (10,121) |  |  | 1 |  |  | 15,674 |
Indefinite-lived assets – IPR&D(1) |  | 7,120 |  |  | — |  |  | — |  |  | 7,120 |  |  | 13,220 |  |  | — |  |  | — |  |  | 13,220 |
Total intangible assets |  | $ | 39,014 |  |  | $ | (11,863) |  |  | $ | 1 |  |  | $ | 27,152 |  |  | $ | 39,014 |  |  | $ | (10,121) |  |  | $ | 1 |  |  | $ | 28,894 |
_______________________________ (1) In February 2023, FDA granted approval of Trodelvy for use in adult patients with unresectable locally advanced or metastatic HR+/HER2- breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. Accordingly, the related IPR&D intangible asset of $6.1 billion was reclassified to finite-lived assets in the first quarter of 2023. Amortization Expense Aggregate amortization expense related to finite-lived intangible assets was $598 million and $1.7 billion for the three and nine months ended September 30, 2023, respectively, and $445 million and $1.3 billion for the three and nine months ended September 30, 2022, respectively, and is primarily included in Cost of goods sold on our Condensed Consolidated Statements of Income. The following table summarizes the estimated future amortization expense associated with our finite-lived intangible assets as of September 30, 2023:
(in millions) |  | Amount
2023 (remaining three months) |  | $ | 598 |
2024 |  | 2,392 |
2025 |  | 2,386 |
2026 |  | 2,378 |
2027 |  | 2,378 |
Thereafter |  | 9,900 |
Total |  | $ | 20,032 |
Impairment Assessments No indicators of impairment were noted for the three and nine months ended September 30, 2023 and 2022, except as described under “2022 IPR&D Impairment” below. 2022 IPR&D Impairment In connection with our acquisition of Immunomedics in 2020, we allocated a portion of the purchase price to acquired IPR&D intangible assets. Approximately $8.8 billion was assigned to IPR&D intangible assets related to Trodelvy for treatment of patients with hormone receptor-positive, human epidermal growth factor receptor 2-negative (“HR+/HER2-”) breast cancer. In March 2022, we received data from the Phase 3 TROPiCS-02 study evaluating Trodelvy in patients with HR+/HER2- metastatic breast cancer who have received prior endocrine therapy, cyclin-dependent kinase 4/6 inhibitors and two to four lines of chemotherapy (“third-line plus patients”). Based on our evaluation of the study results, and in connection with the preparation of the financial statements for the first quarter, we updated our estimate of the fair value of our HR+/HER2- IPR&D intangible asset to $6.1 billion as of March 31, 2022. Our estimate of fair value used a probability-weighted income approach that discounts expected future cash flows to the present value, which requires the use of Level 3 fair value measurements and inputs, including estimated revenues, costs, and probability of technical and regulatory success. The expected cash flows included cash flows from HR+/HER2- metastatic breast cancer for third-line plus patients and patients in earlier lines of therapy which are the subject of separate clinical studies. Our revised discounted cash flows were lower primarily due to a delay in launch timing for third-line plus patients which caused a decrease in our market share assumptions based on the expected competitive environment. As of March 2022, there were no changes in our plans or assumptions related to our estimated cash flows for patients in the earlier lines of therapy. We used a discount rate of 6.75% which is based on the estimated weighted-average cost of capital for companies with profiles similar to ours and represents the rate that market participants would use to value the intangible assets. We determined the revised estimated fair value was below the carrying value of the asset and, as a result, we recognized a partial impairment charge of $2.7 billion in In-process research and development impairment on our Condensed Consolidated Statements of Income during the three months ended March 31, 2022.

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