Goodwill

The following table summarizes the changes in the carrying amount of goodwill by segment and in total:



(in millions)	Pharmaceutical (1)			Medical (2)			Total
Balance at June 30, 2016	$	2,919		$	4,248		$	7,167
Goodwill acquired, net of purchase price adjustments	29			35			64
Foreign currency translation adjustments and other	(9		)	(1		)	(10		)
Balance at June 30, 2017	2,939			4,282			7,221
Goodwill acquired, net of purchase price adjustments	1			3,342			3,343
Foreign currency translation adjustments and other	28			6			34
Goodwill divested with the sale of our China distribution business	(347		)	(54		)	(401		)
naviHealth goodwill reclassified to assets held for sale	—			(509		)	(509		)
Impairment	—			(1,372		)	(1,372		)
Balance at June 30, 2018	$	2,621		$	5,695		$	8,316


(1)	At June 30, 2018 and 2017, the Pharmaceutical segment accumulated goodwill impairment loss was $829 million.


(2)	At June 30, 2018, the Medical segment accumulated goodwill impairment loss was $1.4 billion. The Medical segment had no accumulated goodwill impairment loss at June 30, 2017.

The increase in the Medical segment goodwill during fiscal 2018 is primarily due to the Patient Recovery Business acquisition. Goodwill recognized in connection with the Patient Recovery Business acquisition primarily represents the expected benefits from certain synergies of integrating the business, the existing workforce of the acquired entity, and the expected growth from new customers. See Note 2 for further discussion of this acquisition.

In conjunction with the preparation of our consolidated financial statements for fiscal 2018, we recently completed our annual quantitative goodwill impairment test, which we perform annually in the fourth quarter. This quantitative test resulted in a $1.4 billion goodwill impairment charge related to our Medical Unit, which is included in impairments and loss on disposal of assets in our consolidated statements of earnings. The impairment was primarily driven by inventory and cost challenges within our Cordis business which furthered in the fourth quarter of fiscal 2018. This impairment charge does not impact our liquidity, cash flows from operations, or compliance with debt covenants. There was no tax benefit related to the goodwill impairment charge. The goodwill balance for our Medical Unit, after recognizing the impairment, was $4.3 billion at June 30, 2018.

Using a combination of income and market-based approaches (using a discount rate of 8.5 percent), the carrying amount exceeded the fair value and resulted in an impairment of $1.4 billion for the Medical unit. Our fair value estimates utilize significant unobservable inputs and thus represent Level 3 fair value measurements.

During fiscal 2018, goodwill was also reduced by $401 million and $509 million in connection with the sale of our China distribution business and reclassification of naviHealth's assets and liabilities to held for sale, respectively.

See Note 4 for further discussion of this divestiture and assets held for sale.

Other Intangible Assets

The following tables summarize other intangible assets by class at June 30:



	2018
(in millions)	Gross Intangible		Accumulated Amortization		Net Intangible		Weighted- Average Remaining Amortization Period (Years)
Indefinite-life intangibles:
IPR&D, trademarks and other	$	62	$	—	$	62	N/A
Total indefinite-life intangibles	62		—		62		N/A
Definite-life intangibles:
Customer relationships	3,513		1,191		2,322		15
Trademarks, trade names and patents	667		246		421		15
Developed technology and other	1,562		454		1,108		12
Total definite-life intangibles	5,742		1,891		3,851		14
Total other intangible assets	$	5,804	$	1,891	$	3,913	N/A



	2017
(in millions)	Gross Intangible		Accumulated Amortization		Net Intangible
Indefinite-life intangibles:
IPR&D, trademarks and other	$	61	$	—	$	61
Total indefinite-life intangibles	61		—		61
Definite-life intangibles:
Customer relationships	1,966		967		999
Trademarks, trade names and patents	509		195		314
Developed technology and other	916		304		612
Total definite-life intangibles	3,391		1,466		1,925
Total other intangible assets	$	3,452	$	1,466	$	1,986

Total amortization of intangible assets was $574 million, $395 million and $355 million for fiscal 2018, 2017 and 2016, respectively. The estimated annual amortization for intangible assets for fiscal 2019 through 2023 is as follows: $529 million, $501 million, $430 million, $398 million and $348 million.

During fiscal 2018, other intangible assets were reduced by $62 million and $133 million in connection with the sale of our China distribution business and reclassification of naviHealth's assets and liabilities to held for sale, respectively.

See Note 4 for further discussions of this divestiture and assets held for sale.