Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

e components of, and changes in, the carrying amount of goodwill are as follows:

(MILLIONS OF DOLLARS)	U.S.		International			Total
Balance, December 31, 2018	$	1,265	$	1,254		$	2,519
Additions(a)	58		—			58
Other(b)	—		(27		)	(27		)
Balance, September 30, 2019	$	1,323	$	1,227		$	2,550

^(a) Includes the preliminary purchase price allocation related to the acquisition of Platinum Performance in the third quarter of 2019.

^(b) Includes measurement period adjustments related to the acquisition of Abaxis and adjustments for foreign currency translation.

The gross goodwill balance was $3,086 million and $3,055 million as of September 30, 2019 and December 31, 2018, respectively. Accumulated goodwill impairment losses were $536 million as of September 30, 2019 and December 31, 2018.

B. Other Intangible Assets

The components of identifiable intangible assets are as follows:

	As of September 30, 2019							As of December 31, 2018
						Identifiable							Identifiable
	Gross					Intangible Assets		Gross					Intangible Assets
	Carrying		Accumulated			Less Accumulated		Carrying		Accumulated			Less Accumulated
(MILLIONS OF DOLLARS)	Amount		Amortization			Amortization		Amount		Amortization			Amortization
Finite-lived intangible assets:
Developed technology rights(a)	$	1,943	$	(621	)	$	1,322	$	1,854	$	(523	)	$	1,331
Brands(a)	258		(163		)	95		212		(154		)	58
Trademarks and trade names	166		(56		)	110		166		(51		)	115
Other(a)	422		(230		)	192		412		(178		)	234
Total finite-lived intangible assets	2,789		(1,070		)	1,719		2,644		(906		)	1,738
Indefinite-lived intangible assets:
In-process research and development	105		—			105		197		—			197
Brands	37		—			37		37		—			37
Trademarks and trade names	67		—			67		67		—			67
Product rights	7		—			7		7		—			7
Total indefinite-lived intangible assets	216		—			216		308		—			308
Identifiable intangible assets	$	3,005	$	(1,070	)	$	1,935	$	2,952	$	(906	)	$	2,046

^(a) Includes additions primarily related to the preliminary fair value of intangible assets acquired in the third quarter of 2019 associated with the acquisition of Platinum Performance.

C. Amortization

Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as it benefits multiple business functions. Amortization expense related to finite-lived acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, general and administrative expenses or Research and development expenses, as appropriate. Total amortization expense for finite-lived intangible assets was $60 million and $176 million for the three and nine months ended September 30, 2019, respectively, and $45 million and $96 million for the three and nine months ended September 30, 2018, respectively.