XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 6 Months Ended
--- | ---
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following is a reconciliation of goodwill by segment.
(in millions) | Medical Products and Therapies | Healthcare Systems and Technologies | Pharmaceuticals | Kidney Care | Total
Balance as of December 31, 2023 | $ | 1,241 |  | $ | 3,989 |  | $ | 563 |  | $ | 721 |  | $ | 6,514 |
Impairment | — |  | — |  | — |  | (430) |  | (430) |
Currency translation | (37) |  | (8) |  | (16) |  | (22) |  | (83) |
Balance as of June 30, 2024 | $ | 1,204 |  | $ | 3,981 |  | $ | 547 |  | $ | 269 |  | $ | 6,001 |
Goodwill Impairment In March 2024, we announced that we had been in recent discussions with select private equity investors to explore a potential sale of our Kidney Care business in lieu of the previously announced proposed spinoff of that business. While we have not finalized our decision with respect to the ultimate structure of the proposed Kidney Care separation at the time of this filing, we received bids from prospective buyers in June 2024 following the completion of a related due diligence process in connection with a potential sale transaction. If we were to sell our overall Kidney Care business at a price consistent with the bid we received that we believe to be most representative of fair value, we would recognize a significant gain, although the expected net pre-tax proceeds would be less than the sum of the individual fair values that we previously estimated for the two reporting units within our Kidney Care segment in connection with our most recent goodwill impairment assessments. Additionally, the fair value of our Chronic Therapies reporting unit within our Kidney Care segment exceeded its carrying value by only 6% as of November 1, 2023, the date of our most recent goodwill impairment test for that reporting unit. As a result of those factors, we performed an interim goodwill impairment assessment of our Chronic Therapies reporting unit in the second quarter of 2024, which resulted in a pre-tax goodwill impairment charge of $430 million, representing all of the goodwill of that reporting unit. The fair value of our Chronic Therapies reporting unit was determined based on a discounted cash flow model (an income approach) and earnings multiples (a market approach) based on the guideline public company method. Significant assumptions used in the determination of the fair value of the reporting unit included forecasted cash flows, discount rates, terminal growth rates, and earnings multiples. The discounted cash flow model used to determine the fair value of our Chronic Therapies reporting unit included our most recent cash flow projections, a 12.5% discount rate, and a 2.5% terminal growth rate, and multiples of forward-looking EBITDA ranged from 4.75 to 5.00. Our Chronic Therapies reporting unit fair value measurement is classified as Level 3 in the fair value hierarchy because it involves significant unobservable inputs. The fair value of the remaining reporting unit within our Kidney Care segment, Acute Therapies, significantly exceeded its carrying value as of its most recent goodwill impairment test and we determined that an interim goodwill impairment test of that reporting unit was not required. However, in connection with the interim goodwill impairment test of our Chronic Therapies reporting unit during the second quarter of 2024, we also performed a fair value measurement of our Acute Therapies reporting unit and we calibrated the sum of the fair values of those two Kidney Care reporting units to the bid we received for the overall Kidney Care business that we believe to be most representative of fair value. Other intangible assets, net The following is a summary of our other intangible assets.
|  |  |  |  | Indefinite-lived intangible assets |
(in millions) | Customer relationships | Developed technology, including patents | Trade names | Other amortized intangible assets | Trade names | In process Research and Development | Total
June 30, 2024 |  |  |  |  |  |  |
Gross other intangible assets | $ | 3,442 |  | $ | 3,806 |  | $ | 1,097 |  | $ | 118 |  | $ | 680 |  | $ | 157 |  | $ | 9,300 |
Accumulated amortization | (802) |  | (2,451) |  | (206) |  | (100) |  | — |  | — |  | (3,559) |
Other intangible assets, net | $ | 2,640 |  | $ | 1,355 |  | $ | 891 |  | $ | 18 |  | $ | 680 |  | $ | 157 |  | $ | 5,741 |
December 31, 2023 |  |  |  |  |  |  |
Gross other intangible assets | $ | 3,446 |  | $ | 3,823 |  | $ | 1,106 |  | $ | 120 |  | $ | 680 |  | $ | 157 |  | $ | 9,332 |
Accumulated amortization | (689) |  | (2,285) |  | (180) |  | (99) |  | — |  | — |  | (3,253) |
Other intangible assets, net | $ | 2,757 |  | $ | 1,538 |  | $ | 926 |  | $ | 21 |  | $ | 680 |  | $ | 157 |  | $ | 6,079 |
Intangible asset amortization expense was $167 million and $157 million for the three months ended June 30, 2024 and 2023, respectively, and $333 million and $319 million for the six months ended June 30, 2024 and 2023, respectively.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration