Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 7 — Goodwill and Intangible Assets

The total amount of goodwill reported was $23.4 billion at March 31, 2024 and $23.7 billion at December 31, 2023. Foreign currency translation adjustments decreased goodwill by approximately $294 million in the first three months of 2024. The amount of goodwill related to reportable segments at March 31, 2024 was $2.7 billion for the Established Pharmaceutical Products segment, $285 million for the Nutritional Products segment, $3.5 billion for the Diagnostic Products segment, and $16.9 billion for the Medical Devices segment. There was no reduction of goodwill relating to impairments in the first three months of 2024.

The gross amount of amortizable intangible assets, primarily product rights and technology, was $27.5 billion and $27.7 billion as of March 31, 2024 and December 31, 2023, respectively. Accumulated amortization was $20.0 billion and $19.7 billion as of March 31, 2024 and December 31, 2023, respectively. In the first three months of 2024, intangible assets decreased $38 million due to foreign currency translation and $8 million due to an impairment charge. Abbott’s estimated annual amortization expense for intangible assets is approximately $1.9 billion in 2024, $1.7 billion in 2025, $1.6 billion in 2026, $1.3 billion in 2027 and $0.7 billion in 2028.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $787 million as of March 31, 2024 and as of December 31, 2023.