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Goodwill and intangible assets (Tables)
 12 Months Ended
Dec. 31, 2022
Disclosure of detailed information about intangible assets [abstract]  
Movements of goodwill and intangible assets
The following table summarizes the movements of goodwill and intangible assets in 2022:
Goodwill
Intangible assets other than goodwill

(USD millions)


Total
In-process
research and
development


Technologies
Currently
marketed
products
Other
intangible
assets


Total
At January 1, 2022
Cost
29 900
8 013
1 080
56 213
2 905
68 211
Accumulated amortization and impairment
-305
-2 514
-903
-29 107
-1 505
-34 029
Net book value
29 595
5 499
177
27 106
1 400
34 182
 
At January 1, 2022
29 595
5 499
177
27 106
1 400
34 182
Impact of acquisitions of businesses
161
1 209
1 209
Reclassifications 1
-1 429
2
1 403
24
Additions
330
1 175
588
2 093
Disposals and derecognitions 2
-28
-95
-3
-2
-100
Amortization charge
-37
-3 603
-342
-3 982
Impairment charge
-917
-15
-322
-72
-1 326
Currency translation effects
-427
-176
-6
-243
-7
-432
At December 31, 2022
29 301
4 421
121
25 513
1 589
31 644
 
At December 31, 2022
Cost
29 596
7 092
1 038
58 249
3 305
69 684
Accumulated amortization and impairment
-295
-2 671
-917
-32 736
-1 716
-38 040
Net book value
29 301
4 421
121
25 513
1 589
31 644
 1  Reclassifications between various asset categories as a result of product launches of acquired in-process research and development and completion of software development
 2  Derecognition of assets that are no longer being used or developed and are not considered to have a significant disposal value or other alternative use
The following table summarizes the movements of goodwill and intangible assets in 2021:
Goodwill
Intangible assets other than goodwill

(USD millions)


Total
In-process
research and
development


Technologies
Currently
marketed
products
Other
intangible
assets


Total
At January 1, 2021
Cost
30 321
6 893
1 115
57 333
2 384
67 725
Accumulated amortization and impairment
-322
-2 193
-885
-26 566
-1 272
-30 916
Net book value
29 999
4 700
230
30 767
1 112
36 809
 
At January 1, 2021
29 999
4 700
230
30 767
1 112
36 809
Impact of acquisitions of businesses
238
262
292
98
652
Reclassifications 1
-20
15
5
Additions
958
270
508
1 736
Disposals and derecognitions 2
-36
-1
-37
Amortization charge
-41
-3 607
-255
-3 903
Impairment charge
-350
-17
-1
-35
-403
Currency translation effects
-642
-51
-10
-584
-27
-672
At December 31, 2021
29 595
5 499
177
27 106
1 400
34 182
 
At December 31, 2021
Cost
29 900
8 013
1 080
56 213
2 905
68 211
Accumulated amortization and impairment
-305
-2 514
-903
-29 107
-1 505
-34 029
Net book value
29 595
5 499
177
27 106
1 400
34 182
 1  Reclassifications between various asset categories as a result of product launches of acquired in-process research and development and completion of software development
 2  Derecognition of assets that are no longer being used or developed and are not considered to have a significant disposal value or other alternative use
Allocation of net book values of goodwill and intangible assets by reporting segment
Goodwill1
Intangible assets other than goodwill

(USD millions)


Total
In-process
research and
development


Technologies
Currently
marketed
products
Other
intangible
assets


Total
Innovative Medicines
21 531
4 186
14
24 487
1 139
29 826
Sandoz
7 770
235
107
1 026
92
1 460
Corporate
358
358
Net book value at December 31, 2022
29 301
4 421
121
25 513
1 589
31 644
 1  The Innovative Medicines and Sandoz Divisions’ represent the grouping of cash-generating units, to which goodwill is allocated.
The following table summarizes the allocation of the net book values of goodwill and intangible assets by reporting segment at December 31, 2021:
Goodwill1
Intangible assets other than goodwill

(USD millions)


Total
In-process
research and
development


Technologies
Currently
marketed
products
Other
intangible
assets


Total
Innovative Medicines
21 562
5 313
15
25 938
1 091
32 357
Sandoz
8 026
186
162
1 168
61
1 577
Corporate
7
248
248
Net book value at December 31, 2021
29 595
5 499
177
27 106
1 400
34 182
 1  The Innovative Medicines and Sandoz Divisions’ and Corporate represent the grouping of cash-generating units, to which goodwill is allocated.
Assumptions used in the calculation of valuation

(As a percentage)
Innovative
Medicines

Sandoz
Terminal growth rate
1.5
1.0
Discount rate (post-tax)
8.0
8.0
Intangible asset impairment charges and reversals
Impairment charges
Impairment reversals
(USD millions)
2022
2021
2020
2022
2021
2020
Innovative Medicines 1
-1 299
-367
-768
Sandoz
-25
-28
-141
Corporate
-2
-8
-5
Total
-1 326
-403
-914
 1  2022 includes an impairment of USD 0.6 billion related to the write-down of IPR&D related to cessation of clinical development program UNR844.
     2021 includes an impairment of USD 0.2 billion related to the write-down of IPR&D related to cessation of clinical development program GTX312.
     2020 includes an impairment of USD 0.5 billion related to the write-down of IPR&D related to cessation of clinical development program ZPL389 for atopic dermatitis and USD 0.2 billion related to a partial write-down of the Votrient currently marketed product (Votrient carrying value was USD 0.9 billion in 2022 and USD 1.3 billion in 2021).