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GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 13. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill were as follows:

		December 31,
Dollars in Millions		2012		2011
Carrying amount of goodwill at January 1		$	5,586	$	5,233
Acquisitions:
	Amira		-		265
	Inhibitex		1,213		-
	Amylin		836		-
Other			-		88
Carrying amount of goodwill at December 31		$	7,635	$	5,586

Other includes an out-of-period adjustment 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, 2012						December 31, 2011
			Gross				Net		Gross					Net
	Estimated		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
Dollars in Millions	Useful Lives		Amount		Amortization		Amount		Amount		Amortization		Amount
Licenses	5 – 15	years	$	1,160	$	534	$	626	$	1,218	$	443	$	775
Developed technology rights	7 – 15	years		8,827		1,604		7,223		2,608		1,194		1,414
Capitalized software	3 – 10	years		1,200		939		261		1,147		857		290
Total finite-lived intangible assets				11,187		3,077		8,110		4,973		2,494		2,479

IPRD				668		-		668		645		-		645
Total other intangible assets			$	11,855	$	3,077	$	8,778	$	5,618	$	2,494	$	3,124

Changes in other intangible assets were as follows:

Dollars in Millions	2012		2011		2010
Other intangible assets carrying amount at January 1	$	3,124	$	3,370	$	2,865
Capitalized software and other additions		60		75		107
Acquisitions		8,335		160		678
Amortization expense		(607)		(353)		(271)
Impairment charges		(2,134)		(30)		(10)
Other		-		(98)		1
Other intangible assets, net carrying amount at December 31	$	8,778	$	3,124	$	3,370

Annual amortization expense of other intangible assets is expected to be approximately $850 million in 2013, $850 million in 2014, $750 million in 2015, $750 million in 2016, $700 million in 2017 and $4,210 million thereafter.

BMS announced the discontinued development of BMS-986094 (formerly known as INX-189), a nucleotide polymerase (NS5B) inhibitor that was in Phase II development for the treatment of the hepatitis C virus infection on August 23, 2012. The decision was made in the interest of patient safety, based on a rapid, thorough and ongoing assessment of patients in a Phase II study that was voluntarily suspended on August 1, 2012. BMS acquired BMS-986094 with its acquisition of Inhibitex in February 2012. As a result of the termination of this development program, a $1,830 million pre-tax impairment charge was recognized for the IPRD intangible asset.

An impairment charge of $120 million was recognized in 2012 related to a partial write-down to fair value of developed technology costs related to a non-key product (Recothrom) acquired in the acquisition of ZymoGenetics. The developed technology impairment charge resulted from continued competitive pricing pressures.

- 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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