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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2022
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 a result of the Company’s change to its reportable segments in the fourth quarter of 2022 (refer to Note 6 for additional information), the Company also changed its reporting units for goodwill aggregation and impairment testing and the number of reporting units increased from five reporting units to eight reporting units. As of December 31, 2022, the Company had eight reporting units for goodwill impairment testing. The Company used the relative fair value method to reallocate goodwill to the associated reporting units impacted by the change in reportable segments in the fourth quarter of 2022, resulting in goodwill of approximately $21.0 billion (including the impact of 2022 acquisitions prior to the allocation date) and $8.1 billion being allocated to the Biotechnology and Life Sciences reportable segments, respectively. The Company performed the annual quantitative goodwill impairments analysis immediately prior to and following the change in reportable segments. As of the date of the 2022 annual impairment test, the carrying value of the goodwill included in each individual reporting unit ranged from $524 million to approximately $29.1 billion for the previous five reporting units and $524 million to approximately $21.0 billion for the current eight reporting units. No goodwill impairment charges were recorded for the years ended December 31, 2022, 2021 and 2020 and no “triggering” events have occurred subsequent to the performance of the 2022 annual impairment test. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings. The following is a rollforward of the Company’s goodwill by segment ($ in millions):
| Biotechnology |  | Life Sciences |  | Diagnostics |  | Environmental & Applied Solutions |  | Total
Balance, January 1, 2021 | $ | — |  |  | $ | 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 |
Attributable to acquisitions (a) | — |  |  | 157 |  |  | — |  |  | 40 |  |  | 197 |
Adjustments due to finalization of purchase price allocations | — |  |  | 26 |  |  | (9) |  |  | 1 |  |  | 18 |
Foreign currency translation and other | — |  |  | (2,676) |  |  | (330) |  |  | (142) |  |  | (3,148) |
Balance, before resegmentation | — |  |  | 29,145 |  |  | 6,705 |  |  | 2,401 |  |  | 38,251 |
Reallocation among new reporting units (a) | 21,019 |  |  | (21,019) |  |  | — |  |  | — |  |  | — |
Attributable to acquisitions | 176 |  |  | 43 |  |  | 13 |  |  | (2) |  |  | 230 |
Adjustments due to finalization of purchase price allocations | — |  |  | (2) |  |  | — |  |  | — |  |  | (2) |
Foreign currency translation and other | 892 |  |  | 147 |  |  | 157 |  |  | 77 |  |  | 1,273 |
Balance, December 31, 2022 | $ | 22,087 |  |  | $ | 8,314 |  |  | $ | 6,875 |  |  | $ | 2,476 |  |  | $ | 39,752 |
(a) A total of approximately $21.0 billion of goodwill was allocated to the Biotechnology reportable segment, of which $116 million is shown on the Attributable to acquisitions line before resegmentation as it relates to a 2022 acquisition that occurred prior to the allocation date. Finite-lived intangible assets are amortized over their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets as of December 31 ($ in millions):
| 2022 |  | 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Finite-lived intangibles: |  |  |  |  |  |  |
Patents and technology | $ | 13,508 |  |  | $ | (3,024) |  |  | $ | 14,377 |  |  | $ | (2,281) |
Customer relationships, trade names and other intangibles | 10,183 |  |  | (4,212) |  |  | 9,547 |  |  | (3,748) |
Total finite-lived intangibles | 23,691 |  |  | (7,236) |  |  | 23,924 |  |  | (6,029) |
Indefinite-lived intangibles: |  |  |  |  |  |  |
Trademarks and trade names | 3,845 |  |  | — |  |  | 4,948 |  |  | — |
Total intangibles | $ | 27,536 |  |  | $ | (7,236) |  |  | $ | 28,872 |  |  | $ | (6,029) |
During 2022, the Company acquired finite-lived intangible assets, consisting primarily of developed technology, customer relationships and trade names, with a weighted average life of 12 years. 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. 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 second quarter of 2022 in the Environmental & Applied Solutions segment and the first quarter of 2021 in the Diagnostics segment which resulted in the impairment of certain long-lived assets, including technology, customer relationships and trade names. In 2022 and 2021, the Company recorded impairment charges totaling $9 million and $10 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 2022, 2021 and 2020 was $1,484 million, $1,450 million and $1,138 million, respectively. Based on the intangible assets recorded as of December 31, 2022, amortization expense is estimated to be approximately $1.5 billion during 2023, $1.5 billion during 2024, $1.5 billion during 2025, $1.4 billion during 2026 and $1.3 billion during 2027.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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