Intangible Assets

12 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets at September 30 consisted of:



	2016				2015
(Millions of dollars)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets
Customer relationships	$	3,360	$	339	$	3,370	$	120
Developed technology	3,409		754		3,487		510
Product rights	125		43		128		35
Trademarks	405		45		405		26
Patents and other	349		254		333		212
Amortized intangible assets	$	7,648	$	1,435	$	7,723	$	903

Unamortized intangible assets
Acquired in-process research and development	$	66			$	203
Trademarks	2				2
Unamortized intangible assets	$	68			$	205

The net decrease in developed technology included approximately $117 million of assets reclassified as held for sale on the consolidated balance sheet in connection with the Respiratory Solutions transaction. This decrease was partly offset by the reclassification to Developed Technology, Net of $57 million, in the fourth quarter of fiscal year 2016, due to the Company's completion of project assets recognized upon its acquisition of GenCell Biosystems. The decrease in acquired in-process research and development assets included this reclassification of completed project assets, as well as approximately $80 million of assets reclassified as held for sale on the consolidated balance sheet in connection with the Respiratory Solutions transaction. Additional disclosures regarding this divestiture are provided in Note 10.

Intangible amortization expense was $552 million, $346 million and $84 million in 2016, 2015 and 2014, respectively. The estimated aggregate amortization expense for the fiscal years ending September 30, 2017 to 2021 are as follows: 2017 — $525 million; 2018 — $515 million; 2019 — $510 million; 2020 — $509 million; 2021 — $504 million.

The following is a reconciliation of goodwill by business segment:



(Millions of dollars)	Medical				Life Sciences				Total
Goodwill as of September 30, 2014	$	482			$	608			$	1,090
Acquisitions	6,585			(A)	130			(B)	6,716
Purchase accounting adjustments/currency translation	(261		)	(C)	(8		)		(269		)
Goodwill as of September 30, 2015	$	6,807			$	730			$	7,537
Divestiture	(32		)		—				(32		)
Purchase accounting adjustments/currency translation	(87		)	(C)	1				(86		)
Goodwill as of September 30, 2016	$	6,688			$	731			$	7,419


(A)	Primarily represents goodwill recognized upon the Company’s acquisition of CareFusion in the second quarter of fiscal year 2015. Also includes $22 million of goodwill associated with acquisitions that were immaterial on an individual and aggregate basis. Additional disclosures regarding the Company's acquisitions are provided in Note 9 .


(B)	Represents goodwill recognized upon the Company’s acquisitions of GenCell and Cellular Research.


(C)	Primarily represents acquisition accounting adjustments relating to the CareFusion acquisition. Adjustments in 2016 and 2015 of $94 million and $219 million, respectively, primarily resulted from adjustment to the deferred tax liability 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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