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Goodwill And Other Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill And Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS As discussed in Note 2, goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired less assumed liabilities and noncontrolling interests. Management assesses the goodwill of each of its reporting units for impairment at least annually at the beginning of the fourth quarter and as “triggering” events occur that indicate that it is more likely than not that an impairment exists. The Company elected to bypass the optional qualitative goodwill assessment allowed by applicable accounting standards and performed a quantitative impairment test for all reporting units as this was determined to be the most effective method to assess for impairment across the reporting units. The Company estimates the fair value of its reporting units primarily using a market approach, based on current trading multiples of EBITDA for companies operating in businesses similar to each of the Company’s reporting units, in addition to recent available market sale transactions of comparable businesses. In determining the estimated fair value of each reporting unit, the Company also applies a control premium. If the estimated fair value of the reporting unit is less than its carrying value, the Company must perform additional analysis to determine if the reporting unit’s goodwill has been impaired. As of December 31, 2021, the Company had five reporting units for goodwill impairment testing. As of the date of the 2021 annual impairment test, the carrying value of the goodwill included in each individual reporting unit ranged from $515 million to approximately $31.6 billion. No goodwill impairment charges were recorded for the years ended December 31, 2021, 2020 and 2019 and no “triggering” events have occurred subsequent to the performance of the 2021 annual impairment test. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings. The following is a rollforward of the Company’s goodwill by segment ($ in millions):
| Life Sciences |  | Diagnostics |  | Environmental & Applied Solutions |  | Total
Balance, January 1, 2020 | $ | 13,472 |  |  | $ | 6,901 |  |  | $ | 2,340 |  |  | $ | 22,713 |
Attributable to 2020 acquisitions | 10,291 |  |  | — |  |  | 111 |  |  | 10,402 |
Attributable to 2020 divestitures | (181) |  |  | — |  |  | — |  |  | (181) |
Adjustments due to finalization of purchase price allocations | (3) |  |  | — |  |  | — |  |  | (3) |
Foreign currency translation and other | 2,233 |  |  | 181 |  |  | 75 |  |  | 2,489 |
Balance, December 31, 2020 | 25,812 |  |  | 7,082 |  |  | 2,526 |  |  | 35,420 |
Attributable to 2021 acquisitions | 7,077 |  |  | 110 |  |  | 48 |  |  | 7,235 |
Attributable to 2021 divestitures | — |  |  | — |  |  | (12) |  |  | (12) |
Adjustments due to finalization of purchase price allocations | (11) |  |  | — |  |  | — |  |  | (11) |
Foreign currency translation and other | (1,240) |  |  | (148) |  |  | (60) |  |  | (1,448) |
Balance, December 31, 2021 | $ | 31,638 |  |  | $ | 7,044 |  |  | $ | 2,502 |  |  | $ | 41,184 |
The increase in the goodwill balance of the Life Sciences segment in the year ended December 31, 2021 is primarily a result of the Aldevron Acquisition. Refer to Note 2 for more detail. Finite-lived intangible assets are amortized over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets as of December 31 ($ in millions):
| 2021 |  | 2020
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Finite-lived intangibles: |  |  |  |  |  |  |
Patents and technology | $ | 14,377 |  |  | $ | (2,281) |  |  | $ | 12,526 |  |  | $ | (1,539) |
Customer relationships, trade names and other intangibles | 9,547 |  |  | (3,748) |  |  | 9,355 |  |  | (3,235) |
Total finite-lived intangibles | 23,924 |  |  | (6,029) |  |  | 21,881 |  |  | (4,774) |
Indefinite-lived intangibles: |  |  |  |  |  |  |
Trademarks and trade names | 4,948 |  |  | — |  |  | 4,175 |  |  | — |
Total intangibles | $ | 28,872 |  |  | $ | (6,029) |  |  | $ | 26,056 |  |  | $ | (4,774) |
During 2021, the Company acquired finite-lived intangible assets, consisting primarily of developed technology, customer relationships and trade names, with a weighted average life of 13 years primarily as a result of the Aldevron Acquisition. During 2020, the Company acquired finite-lived intangible assets, consisting primarily of developed technology, customer relationships and trade names, with a weighted average life of 17 years primarily as a result of the Cytiva Acquisition. Refer to Note 2 for additional information on the intangible assets acquired. The Company reviews identified intangible assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Indefinite-lived intangibles are subject to impairment testing at least annually or more frequently if events or changes in circumstances indicate that potential impairment exists. The Company identified impairment triggers during the first quarter of 2021 in the Diagnostics segment and the first and third quarters of 2020 in the Diagnostics and Environmental & Applied Solutions segments which resulted in the impairment of certain long-lived assets, including trade names and other intangible assets. In 2021 and 2020, the Company recorded impairment charges totaling $10 million and $22 million, respectively, related to these long-lived assets in selling, general and administrative expenses in the Consolidated Statements of Earnings. Total intangible amortization expense in 2021, 2020 and 2019 was $1,450 million, $1,138 million and $625 million, respectively. The increase in intangible amortization expense in 2021 and 2020 was primarily as a result of the Aldevron and Cytiva acquisitions and the amortization of the associated finite-lived intangible assets. Based on the intangible assets recorded as of December 31, 2021, amortization expense is estimated to be approximately $1.5 billion during 2022, $1.5 billion during 2023, $1.5 billion during 2024, $1.5 billion during 2025 and $1.4 billion during 2026.

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