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Goodwill and Other Intangible Assets | 12 Months Ended
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Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 4. Goodwill and Other Intangible Assets 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, 2020 | $ | 2,657 |  |  | $ | 5,700 |  |  | $ | 8,357 |
Goodwill acquired, net of purchase price adjustments | 2 |  |  | — |  |  | 2 |
Foreign currency translation adjustments and other | — |  |  | 18 |  |  | 18 |
Cordis goodwill reclassified to assets held for sale | — |  |  | (388) |  |  | (388) |
Balance at June 30, 2021 | 2,659 |  |  | 5,330 |  |  | 7,989 |
Goodwill acquired, net of purchase price adjustments | 14 |  |  | — |  |  | 14 |
Foreign currency translation adjustments and other | — |  |  | (64) |  |  | (64) |
Goodwill impairment | — |  |  | (2,084) |  |  | (2,084) |
Balance at June 30, 2022 | $ | 2,673 |  |  | $ | 3,182 |  |  | $ | 5,855 |
(1) At June 30, 2022 and 2021, the Pharmaceutical segment accumulated goodwill impairment loss was $829 million. (2) At June 30, 2022 and 2021, the Medical segment accumulated goodwill impairment loss was $3.5 billion and $1.4 billion, respectively. During fiscal 2022, the Medical Unit experienced adverse financial results related to inflationary impacts and the adverse impact of global supply chain constraints and lower volumes from PPE. Due to the risks and uncertainties related to these impacts and an increase in the risk-free interest rate used in the discount rate, we elected to bypass the qualitative assessment and perform quantitative goodwill impairment testing for the Medical Unit at June 30, 2022. This quantitative testing resulted in the carrying amount of the Medical Unit exceeding the fair value, resulting in a pre-tax impairment charge of $303 million and cumulative pre-tax impairment charges of $2.1 billion recognized during fiscal 2022, due to the impairment charges recognized during the third and second quarters of fiscal 2022 as described further below. This impairment charge was driven by an increase in the discount rate primarily due to an increase in the risk-free interest rate. Our determination of the estimated fair value of the Medical Unit is based on a combination of the income-based approach and the market-based approach. For this testing performed at June 30, 2022, we used a discount rate of 10 percent and a terminal growth rate of 2 percent. The goodwill balance of the Medical Unit, after recognizing the impairment, was $1.9 billion at June 30, 2022. During the third and second quarters of fiscal 2022, we performed interim goodwill impairment testing for the Medical Unit at March 31, 2022 and December 31, 2021, which resulted in pre-tax impairment charges of $1.3 billion and $474 million, which were recognized during the second and third quarters of fiscal 2022, respectively, and are included in impairments and (gain)/loss on disposal of assets in our consolidated statements of earnings/(loss). Our determination of the estimated fair value of the Medical Unit is based on a combination of the income-based approach (using a terminal growth rate of 2 percent), and the market-based approach. For the income-based approach, we also used discount rates of 9 percent and 9.5 percent for the interim testing during the second and third quarters of fiscal 2022, respectively. The increase in the discount rate was primarily due to an increase in the risk-free interest rate. Our fair value estimates utilize significant unobservable inputs and thus represent Level 3 fair value measurements. In connection with the divestiture of the Cordis business, during fiscal 2021 we allocated and reclassified $388 million of goodwill from the Medical Unit (within our Medical Segment) to the Cordis disposal group based on the estimated relative fair values of the business to be disposed of and the portion of the reporting unit that was retained. Other Intangible Assets The following tables summarize other intangible assets by class at June 30:
| 2022
(in millions) | Gross Intangible |  | Accumulated Amortization |  | Net Intangible |  | Weighted- Average Remaining Amortization Period (Years)
Indefinite-life intangibles: |  |  |  |  |  |  |
Trademarks and patents | $ | 11 |  |  | $ | — |  |  | $ | 11 |  |  | N/A
Total indefinite-life intangibles | 11 |  |  | — |  |  | 11 |  |  | N/A
Definite-life intangibles: |  |  |  |  |  |  |
Customer relationships | 3,272 |  |  | 2,165 |  |  | 1,107 |  |  | 10
Trademarks, trade names and patents | 552 |  |  | 360 |  |  | 192 |  |  | 8
Developed technology and other | 1,038 |  |  | 574 |  |  | 464 |  |  | 9
Total definite-life intangibles | 4,862 |  |  | 3,099 |  |  | 1,763 |  |  | 9
Total other intangible assets | $ | 4,873 |  |  | $ | 3,099 |  |  | $ | 1,774 |  |  | N/A
| 2021
(in millions) | Gross Intangible |  | Accumulated Amortization |  | Net Intangible
Indefinite-life intangibles: |  |  |  |  |
Trademarks and patents | $ | 12 |  |  | $ | — |  |  | $ | 12 |
Total indefinite-life intangibles | 12 |  |  | — |  |  | 12 |
Definite-life intangibles: |  |  |  |  |
Customer relationships | 3,330 |  |  | 1,989 |  |  | 1,341 |
Trademarks, trade names and patents | 551 |  |  | 328 |  |  | 223 |
Developed technology and other | 1,035 |  |  | 506 |  |  | 529 |
Total definite-life intangibles | 4,916 |  |  | 2,823 |  |  | 2,093 |
Total other intangible assets | $ | 4,928 |  |  | $ | 2,823 |  |  | $ | 2,105 |
Total amortization of intangible assets was $311 million, $428 million and $512 million for fiscal 2022, 2021 and 2020, respectively. The estimated annual amortization for intangible assets for fiscal 2023 through 2027 is as follows: $283 million, $260 million, $235 million, $208 million and $175 million.

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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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