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Goodwill and Other Intangible Assets | 12 Months Ended
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Jun. 30, 2023
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, 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 |
Goodwill acquired, net of purchase price adjustments | — |  |  | 15 |  |  | 15 |
Foreign currency translation adjustments and other | — |  |  | (6) |  |  | (6) |
Goodwill impairment | — |  |  | (1,231) |  |  | (1,231) |
Outcomes goodwill reclassified to assets held for sale | (24) |  |  | — |  |  | (24) |
Balance at June 30, 2023 | $ | 2,649 |  |  | $ | 1,960 |  |  | $ | 4,609 |
(1) At June 30, 2023 and 2022, the Pharmaceutical segment accumulated goodwill impairment loss was $829 million. (2) At June 30, 2023 and 2022, the Medical segment accumulated goodwill impairment loss was $4.7 billion and $3.5 billion, respectively. Due to changes in our long-term financial plan assumptions made during fiscal 2023, including those related to Cardinal Health branded medical products sales growth and net inflationary impacts, we elected to bypass the qualitative assessment and perform quantitative goodwill impairment testing for the Medical Unit at June 30, 2023. This quantitative testing resulted in the carrying amount of the Medical Unit exceeding the fair value, resulting in a pre-tax impairment charge of $368 million and cumulative pre-tax impairment charges of $1.2 billion in fiscal 2023, due to the impairment charges recognized during the second and first quarters of fiscal 2023 as described further below. This impairment charge was primarily driven by the impact of the reductions in our long-term financial plan assumptions. The impairment charges were included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings/(loss). We performed interim quantitative goodwill impairment testing for the Medical Unit at December 31, 2022 and September 30, 2022, which resulted in pre-tax impairment charges of $709 million and $154 million, respectively. We also performed interim quantitative goodwill impairment testing at March 31, 2023 and concluded that there was no impairment of goodwill at March 31, 2023 as the estimated fair value of the Medical Unit exceeded its carrying value by approximately 4 percent. The impairment charge recognized in the second quarter was driven by certain reductions in our long-term financial plan assumptions, and the impairment charge recognized in the first quarter was driven by an increase in the discount rate primarily due to an increase in the risk-free interest rate. Our determinations of the estimated fair value of the Medical Unit at June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022 were based on a combination of the income-based approach (using a terminal growth rate of 2 percent), and the market-based approaches. For the income-based approach, we used discount rates of 10 percent, 10 percent, 10.5 percent and 10.5 percent for fourth, third, second and first quarters, respectively. The decrease in the discount rate for the interim testing performed at March 31, 2023 and June 30, 2023 was primarily due to a decrease in the risk-free interest rate. Additionally, we assigned a weighting of 80 percent to the discounted cash flow method, 10 percent to the guideline public company method and 10 percent to the guideline transaction method. Our fair value estimates utilize significant unobservable inputs and thus represent Level 3 fair value measurements. During fiscal 2022, we performed quantitative goodwill impairment testing for the Medical Unit which resulted in cumulative pre-tax impairment charges $2.1 billion, which were included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings/(loss). In connection with the divestiture of the Outcomes business, during fiscal 2023, we allocated and reclassified $24 million of goodwill from the Pharmaceutical operating segment (excluding our Nuclear and Precision Health Solutions division) to the Outcomes 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:
| 2023
(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 | 3,174 |  |  | 2,274 |  |  | 900 |  |  | 9
Trademarks, trade names and patents | 546 |  |  | 380 |  |  | 166 |  |  | 8
Developed technology and other | 1,021 |  |  | 626 |  |  | 395 |  |  | 8
Total definite-life intangibles | 4,741 |  |  | 3,280 |  |  | 1,461 |  |  | 9
Total other intangible assets | $ | 4,752 |  |  | $ | 3,280 |  |  | $ | 1,472 |  |  | N/A
| 2022
(in millions) | Gross Intangible |  | Accumulated Amortization |  | Net Intangible
Indefinite-life intangibles: |  |  |  |  |
Trademarks and patents | $ | 11 |  |  |  |  | $ | 11 |
Total indefinite-life intangibles | 11 |  |  |  |  | 11 |
Definite-life intangibles: |  |  |  |  |
Customer relationships | 3,272 |  |  | 2,165 |  |  | 1,107 |
Trademarks, trade names and patents | 552 |  |  | 360 |  |  | 192 |
Developed technology and other | 1,038 |  |  | 574 |  |  | 464 |
Total definite-life intangibles | 4,862 |  |  | 3,099 |  |  | 1,763 |
Total other intangible assets | $ | 4,873 |  |  | $ | 3,099 |  |  | $ | 1,774 |
Total amortization of intangible assets was $281 million, $311 million and $428 million for fiscal 2023, 2022 and 2021, respectively. The estimated annual amortization for intangible assets for fiscal 2024 through 2028 is as follows: $255 million, $231 million, $205 million, $173 million and $146 million.

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