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Intangible Assets and Goodwill | 9 Months Ended
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Sep. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As of September 28, 2025 and December 29, 2024, the gross and net amounts of intangible assets were:
|  |  |  |  |  | September 28, 2025 |  | December 29, 2024
(Dollars in Millions) |  |  |  |  |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Patents and trademarks |  |  |  |  |  | $ | 4,468 |  |  | $ | (2,065) |  |  | $ | 2,403 |  |  | $ | 4,110 |  |  | $ | (1,780) |  |  | $ | 2,330 |
Customer relationships |  |  |  |  |  | 2,040 |  |  | (1,169) |  |  | 871 |  |  | 1,933 |  |  | (1,074) |  |  | 859 |
Other intangibles |  |  |  |  |  | 1,322 |  |  | (746) |  |  | 576 |  |  | 1,276 |  |  | (694) |  |  | 582 |
Total definite-lived intangible assets |  |  |  |  |  | $ | 7,830 |  |  | $ | (3,980) |  |  | $ | 3,850 |  |  | $ | 7,319 |  |  | $ | (3,548) |  |  | $ | 3,771 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  |  |  |  | $ | 4,804 |  |  | $ | — |  |  | $ | 4,804 |  |  | $ | 4,648 |  |  | $ | — |  |  | $ | 4,648 |
Other |  |  |  |  |  | 62 |  |  | — |  |  | 62 |  |  | 55 |  |  | — |  |  | 55 |
Total intangible assets, net |  |  |  |  |  | $ | 12,696 |  |  | $ | (3,980) |  |  | $ | 8,716 |  |  | $ | 12,022 |  |  | $ | (3,548) |  |  | $ | 8,474 |
Gross carrying amount changes for the fiscal nine months ended September 28, 2025 were driven by the impact of currency translations. No intangible asset impairments were recognized for both the fiscal three and nine months ended September 28, 2025 and the fiscal three months ended September 29, 2024. For the fiscal nine months ended September 29, 2024, the Company recognized $479 million in intangible asset impairments, of which $463 million related to impairment charges recognized in relation to Dr.Ci:Labo® definite-lived intangible assets, including trademarks and other intangibles, as described in Note 1, “Description of the Company and Summary of Significant Accounting Policies—Impairment Charges.” Amortization expense for the Company’s amortizable assets, which is included in Cost of sales, was $66 million for both the fiscal three months ended September 28, 2025 and September 29, 2024, and $193 million and $212 million for the fiscal nine months ended September 28, 2025 and September 29, 2024, respectively. The following table summarizes the changes in the carrying amount of goodwill by reportable business segment during the fiscal nine months ended September 28, 2025:
(Dollars in Millions) |  |  |  |  |  | Self Care |  | Skin Health and Beauty |  | Essential Health |  | Total Goodwill
December 29, 2024 |  |  |  |  |  | $ | 5,054 |  |  | $ | 2,185 |  |  | $ | 1,604 |  |  | $ | 8,843 |
Currency translation |  |  |  |  |  | 425 |  |  | 103 |  |  | 70 |  |  | 598 |
September 28, 2025 |  |  |  |  |  | $ | 5,479 |  |  | $ | 2,288 |  |  | $ | 1,674 |  |  | $ | 9,441 |
During the fiscal three months ended September 28, 2025, there was a reassessment of the long-term outlook for the Skin Health and Beauty business. The revised outlook aimed to address slower growth in the broader skincare categories, as well as the recent decline in profitability of the Skin Health and Beauty reporting unit. Management revised the internal forecasts to reflect the updated outlook. These changes in circumstances were determined to be a triggering event, which resulted in a quantitative interim impairment assessment of the fair value of the Skin Health and Beauty reporting unit. The Company estimates the fair value of a reporting unit using a combination of a discounted cash flow model and a market-based approach. The discounted cash flow model relies on assumptions regarding revenue and net income growth rates, projected working capital needs, capital expenditures, and discount rates. Forecasted cash flows are discounted to present value to estimate the fair value. Under the market-based approach, the Company utilizes the guideline public company method and market transaction method. These methods utilize valuation multiples derived from comparable publicly traded companies and relevant industry transactions, which are then applied to the reporting unit’s operating performance metrics. Based on the results of the assessment, the estimated fair value of the Skin Health and Beauty reporting unit exceeded the carrying value by approximately 10%; therefore, no impairment charge was recorded for the fiscal three months ended September 28, 2025. If all other assumptions were held constant, an increase of approximately 100 basis points in the selected discount rate would have resulted in an impairment charge. A decline in forecasted Net sales or net income, or adverse macroeconomic developments such as rising interest rates, could significantly reduce the excess between fair value and carrying value. Management will continue to monitor the performance of the Skin Health and Beauty business; however, further deterioration of market conditions or an inability of the Company to execute on its strategies could lead to an impairment charge of the goodwill associated with the Skin Health and Beauty reporting unit in the future.

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