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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 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, 2024, the Company had five reporting units for goodwill impairment testing. As of the date of the 2024 annual impairment test, the carrying value of the goodwill included in each individual reporting unit ranged from approximately $1.2 billion to $22.5 billion. No goodwill impairment charges were recorded for any of the years ended December 31, 2024, 2023 and 2022 and no “triggering” events have occurred subsequent to the performance of the 2024 annual impairment test. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated, and a charge would need to be taken against net earnings. The following is a rollforward of the Company’s goodwill by segment ($ in millions):
| Biotechnology |  | Life Sciences |  | Diagnostics |  | Total
Balance, January 1, 2023 | $ | 22,087 |  |  | $ | 8,314 |  |  | $ | 6,875 |  |  | $ | 37,276 |
Attributable to 2023 acquisitions | — |  |  | 3,851 |  |  | — |  |  | 3,851 |
Adjustments due to finalization of purchase price adjustments | 2 |  |  | 5 |  |  | — |  |  | 7 |
Foreign currency translation and other | 388 |  |  | 51 |  |  | 35 |  |  | 474 |
Balance, December 31, 2023 | 22,477 |  |  | 12,221 |  |  | 6,910 |  |  | 41,608 |
Attributable to 2024 acquisitions | — |  |  | 305 |  |  | — |  |  | 305 |
Adjustments due to finalization of purchase price allocations | — |  |  | (23) |  |  | — |  |  | (23) |
Foreign currency translation and other | (1,040) |  |  | (198) |  |  | (155) |  |  | (1,393) |
Balance, December 31, 2024 | $ | 21,437 |  |  | $ | 12,305 |  |  | $ | 6,755 |  |  | $ | 40,497 |
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):
| 2024 |  | 2023
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Finite-lived intangibles: |  |  |  |  |  |  |
Patents and technology | $ | 14,781 |  |  | $ | (4,641) |  |  | $ | 15,175 |  |  | $ | (3,832) |
Customer relationships, trade names and other intangibles | 9,972 |  |  | (4,781) |  |  | 10,131 |  |  | (4,303) |
Total finite-lived intangibles | 24,753 |  |  | (9,422) |  |  | 25,306 |  |  | (8,135) |
Indefinite-lived intangibles: |  |  |  |  |  |  |
Trademarks and trade names | 3,237 |  |  | — |  |  | 3,575 |  |  | — |
Total intangibles | $ | 27,990 |  |  | $ | (9,422) |  |  | $ | 28,881 |  |  | $ | (8,135) |
During 2024, the Company acquired finite-lived intangible assets, consisting primarily of developed technology, customer relationships and trade names, with a weighted average life of 11 years. Refer to Note 2 for 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. During the third quarter of 2024, the Company concluded that it had an impairment indicator for an indefinite-lived trade name within the genomics consumable business included in the Life Sciences segment. This determination was primarily the result of softness in the genomics market, including but not limited to the discontinuation of drug development programs announced in the third quarter and weaker demand at some of the business’s larger customers as well as reduced demand due to the reprioritization of drug development programs at other customers. The Company engaged a third-party valuation specialist to assist in the valuation of the trade name using a relief from royalty method of valuation. The significant assumptions in the relief from royalty method include, but were not limited to, revenue growth rates (including perpetual growth rates), royalty rates and discount rates. The Company recorded a noncash impairment charge of $222 million pretax ($169 million after-tax) related to the indefinite-lived trade name for the year ended December 31, 2024. After recognition of the impairment, the net book value of the trade name was $508 million and the Company continues to monitor for any changes to the business performance or key assumptions. In connection with the trade name impairment, the Company also tested the related asset group and the related reporting unit goodwill for impairment in the third quarter of 2024, and in both cases the Company identified no impairment. In the fourth quarter of 2024, the Company identified impairment triggers for a trade name in the Diagnostics segment and recorded an impairment charge of $43 million. Additionally, the Company identified impairment triggers in the second quarter of 2023 in the Biotechnology segment and the fourth quarter of 2023 in the Diagnostics and Biotechnology segments which resulted in the impairment of certain long-lived assets, including technology and other assets. In 2023, the Company recorded impairment charges totaling $77 million. The 2024 and 2023 impairment charges were recorded in selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings. During 2022 there were no impairments of intangible assets. Total intangible amortization expense in 2024, 2023 and 2022 was approximately $1.6 billion, $1.5 billion and $1.4 billion, respectively. Based on the intangible assets recorded as of December 31, 2024, amortization expense is estimated to be approximately $1.6 billion during 2025, $1.6 billion during 2026, $1.5 billion during 2027, $1.5 billion during 2028 and $1.4 billion during 2029.

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