Intangible Assets

6 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consisted of:



	March 31, 2018				September 30, 2017
(Millions of dollars)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets
Developed technology	$	13,948	$	1,386	$	3,508	$	1,029
Customer relationships	4,566		702		3,393		564
Product rights	131		58		131		54
Trademarks	408		71		408		65
Patents and other	382		274		370		274
Amortized intangible assets	$	19,435	$	2,490	$	7,811	$	1,986
Unamortized intangible assets
Acquired in-process research and development	$	54			$	67
Trademarks	2				2
Unamortized intangible assets	$	56			$	69

Additional disclosures regarding the increases to the developed technology assets and customer relationships as a result of the Bard acquisition are provided in Note 8. Intangible amortization expense for the three months ended March 31, 2018 and 2017 was $370 million and $131 million, respectively. Intangible amortization expense for the six months ended March 31, 2018 and 2017 was $505 million and $268 million, respectively.

The following is a reconciliation of goodwill by business segment:



(Millions of dollars)	Medical			Life Sciences		Interventional			Total
Goodwill as of September 30, 2017	$	6,802		$	761	$	—		$	7,563
Acquisitions (a)	4,389			76		10,674			15,139
Divestitures	—			—		(57		)	(57		)
Reallocation of goodwill for change in segment and reporting unit composition (b)	(877		)	—		877			—
Purchase accounting adjustments (c)	140			—		685			825
Currency translation	14			5		—			19
Goodwill as of March 31, 2018	$	10,469		$	843	$	12,179		$	23,491


(a)	Represents goodwill recognized upon the Company's acquisition of Bard, which is further discussed in Note 8. Also includes goodwill recognized relative to certain acquisitions which were not material individually or in the aggregate.


(b)	Represents the reassignment of goodwill, determined based upon a relative fair value allocation approach, associated with the movement of certain product offerings which were previously reported in the Medical segment and which are now reported in the Interventional segment as further discussed in Note 6.


(c)	The purchase accounting adjustments increasing goodwill were primarily driven by the valuation of developed technology assets acquired in the Bard transaction and the associated deferred tax liability changes. The change also reflects an increase to goodwill resulting from alignment of the combined organization's accounting policies with respect to accrued liabilities and other accounts.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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