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GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 14. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill were as follows:

Dollars in Millions
Balance at January 1, 2010		$	5,218
	ZymoGenetics acquisition		15
Balance at December 31, 2010			5,233
	Amira acquisition		265
	Other		88
Balance at December 31, 2011		$	5,586

Other includes an out-of-period adjustment recorded to correct the purchase price allocation for the September 2009 Medarex acquisition and a $24 million contingent milestone payment from a prior acquisition. The Medarex purchase price adjustment decreased other intangible assets by $98 million and increased deferred tax assets by $34 million and goodwill by $64 million. The effect of this adjustment was not material for the current or any prior periods.

Other intangible assets include:

			December 31, 2011						December 31, 2010
			Gross				Net		Gross					Net
	Estimated		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
Dollars in Millions	Useful Lives		Amount		Amortization		Amount		Amount		Amortization		Amount
Licenses	2 – 15	years	$	1,218	$	443	$	775	$	965	$	368	$	597
Technology	9 – 15	years		2,608		1,194		1,414		1,562		1,001		561
Capitalized software	3 – 10	years		1,147		857		290		1,140		841		299
Total finite-lived intangible assets				4,973		2,494		2,479		3,667		2,210		1,457

IPRD				645		-		645		1,913		-		1,913
Total other intangible assets			$	5,618	$	2,494	$	3,124	$	5,580	$	2,210	$	3,370

In 2011, $1.0 billion of IPRD was reclassified to technology upon approval of YERVOY in the U.S. and $367 million of IPRD was reclassified to licenses for out-licensed compounds that have no further performance obligations.

Changes in other intangible assets were as follows:

Dollars in Millions	2011		2010		2009
Other intangible assets carrying amount at January 1	$	3,370	$	2,865	$	1,151
Capitalized software and other additions		75		107		96
Acquisitions		160		678		1,910
Mead Johnson split-off		-		-		(50)
Amortization - licenses and technology		(271)		(199)		(170)
Amortization - capitalized software		(82)		(72)		(68)
Impairment charges		(30)		(10)		-
Other		(98)		1		(4)
Other intangible assets carrying amount at December 31	$	3,124	$	3,370	$	2,865

Amortization expense included in discontinued operations was $9 million in 2009.

Amortization expense of other intangible assets is expected to be $350 million in 2012, $275 million in 2013, $263 million in 2014, $236 million in 2015, $218 million in 2016 and $1,138 million thereafter.

- 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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