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INTANGIBLE ASSETS AND GOODWILL
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL
Intangible Assets
The major components of intangible assets consist of:
 March 31, 2025December 31, 2024
(in millions)Gross
Carrying
Amount		Accumulated
Amortization
and
Impairments		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization
and
Impairments		Net
Carrying
Amount
Finite-lived intangible assets:      
Product brands$22,483 $(19,293)$3,190 $22,446 $(19,026)$3,420 
Corporate brands993 (724)269 988 (701)287 
Product rights/patents3,258 (3,232)26 3,255 (3,224)31 
Partner relationships, technology and other379 (365)14 370 (355)15 
Total finite-lived intangible assets27,113 (23,614)3,499 27,059 (23,306)3,753 
Acquired in-process research and development100 — 100 100 — 100 
B&L Trademark1,698 — 1,698 1,698 — 1,698 
$28,911 $(23,614)$5,297 $28,857 $(23,306)$5,551 
Long-lived assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment charges associated with these assets are included in Asset impairments in the Condensed Consolidated Statements of Operations. The Company continues to monitor the recoverability of its finite-lived intangible assets and tests the intangible assets for impairment if indicators of impairment are present. The Company estimates the fair values of long-lived assets with finite lives using an undiscounted cash flow model which utilizes Level 3 unobservable inputs. The undiscounted cash flow model relies on assumptions regarding revenue growth rates, gross profit, selling, general and administrative expenses and research and development expenses.
Xifaxan® intangible assets included in the unaudited Condensed Consolidated Balance Sheets had a carrying value of $1,481 million and an estimated remaining useful life of 33 months as of March 31, 2025. The Company has filed lawsuits against third-party generic manufacturers that have sent the Company Notices of Paragraph IV Certification for Xifaxan®. See “Xifaxan® Paragraph IV Proceedings” of Note 17, “LEGAL PROCEEDINGS”).
The Xifaxan® intangible assets were last assessed for potential impairment during the third quarter of 2022. This assessment resulted in no impairment of the carrying value of the Xifaxan® finite-lived intangible assets as of September 30, 2022. As part of that assessment, the Company also determined that no change to the remaining useful lives of its Xifaxan® finite-lived intangible assets was required. During the period September 30, 2022 through March 31, 2025 there were no material adverse changes to the facts and circumstances of the Xifaxan® Generics Litigation or to actual or expected business performance for Xifaxan®. Based on these factors, no impairment to the carrying value of the Xifaxan® finite-lived intangible assets was identified as of March 31, 2025.
It is possible that the Xifaxan® Generics Litigation and other potential future developments: (i) may adversely impact the estimated future cash flows associated with these products, which could result in an impairment of the value of these intangible assets in one or more future periods and (ii) may result in shortened useful lives of the Xifaxan® intangible assets, which would increase amortization expense in future periods. Any such impairment or shortening of the useful lives of Xifaxan® could be material to the results of operations of the Company in the period or periods in which they were to occur.
Estimated amortization expense of finite-lived intangible assets for the remainder of 2025 and each of the five succeeding years ending December 31 and thereafter is as follows:
(in millions)Remainder of 202520262027202820292030ThereafterTotal
Amortization$732 $875 $837 $239 $223 $218 $375 $3,499 
Goodwill
The changes in the carrying amounts of goodwill during the three months ended March 31, 2025 and the year ended December 31, 2024 were as follows:
(in millions)SalixInternationalSolta MedicalDiversifiedBausch + LombTotal
Balance, January 1, 2024$3,159 $862 $115 $1,733 $5,314 $11,183 
Additions— — — — 29 29 
Foreign exchange and other— (70)— 26 (81)(125)
Balance, December 31, 20243,159 792 115 1,759 5,262 11,087 
Foreign exchange and other— 37 — (15)44 66 
Balance, March 31, 2025$3,159 $829 $115 $1,744 $5,306 $11,153 
Goodwill is not amortized but is tested for impairment at least annually on October 1st at the reporting unit level. A reporting unit is the same as, or one level below, an operating segment. The Company performs its annual impairment test by first assessing qualitative factors. Where the qualitative assessment suggests that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative fair value test is performed for that reporting unit (Step 1).
Interim Assessments
No events occurred or circumstances changed during the three months ended March 31, 2025 and 2024 that would indicate that the fair value of any reporting unit might be below its carrying value. However, if market conditions deteriorate, or if the Company is unable to execute its strategies, it may be necessary to record impairment charges in the future and any such charges could be material.
Accumulated goodwill impairment charges through March 31, 2025 were $5,497 million.