GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The Company assesses both goodwill and indefinite-lived intangible assets for impairment annually as of April 1 or more frequently if events or changes in circumstances indicate the asset might be impaired. Based on the Company’s 2021 impairment test, it was determined that the fair values of its reporting units and indefinite-lived intangible assets more likely than not exceeded their respective carrying values, resulting in no impairment.

The fair values of reporting units were computed using a discounted cash flow model with inputs developed using both internal and market-based data. Intangible assets were evaluated for impairment using an income approach, specifically a relief from royalty method, or using a qualitative assessment. A change in any of the estimates and assumptions used in the annual test, a decline in the overall markets or in the use of intangible assets among other factors, could have a material adverse effect to the fair value of either the reporting units or intangible assets and could result in a future impairment charge. There can be no assurance that the Company’s future asset impairment testing will not result in a material charge to earnings.

Subsequent to the annual impairment test, the Company considered qualitative and quantitative factors as of March 31, 2022 to determine whether any events or changes in circumstances had resulted in the likelihood that the goodwill or indefinite-lived intangible assets may have become more likely than not impaired during the course of the quarter, and concluded there were no such indicators.

A reconciliation of changes in the Company’s goodwill by reportable segment were as follows:


(in millions)	Technologies & Equipment		Consumables		Total

Balance at December 31, 2021
Goodwill	$	5,989	$	880	$	6,869
Accumulated impairment losses	(2,893)		—		(2,893)
Goodwill, net	$	3,096	$	880	$	3,976


Translation and other	(31)		(1)		(32)

Balance at March 31, 2022
Goodwill	$	5,958	$	879	$	6,837
Accumulated impairment losses	(2,893)		—		(2,893)
Goodwill, net	$	3,065	$	879	$	3,944

Identifiable definite-lived and indefinite-lived intangible assets were as follows:


	March 31, 2022						December 31, 2021
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Developed technology and patents	$	1,692	$	(777)	$	915	$	1,729	$	(762)	$	967
Tradenames and trademarks	277		(90)		187		269		(79)		190
Licensing agreements	31		(26)		5		36		(32)		4
Customer relationships	1,090		(565)		525		1,091		(545)		546
Total definite-lived	$	3,090	$	(1,458)	$	1,632	$	3,125	$	(1,418)	$	1,707

Indefinite-lived tradenames and trademarks	$	583	$	—	$	583	$	598	$	—	$	598
In-process R&D (a)	13		—		13		14		—		14
Total indefinite-lived	$	596	$	—	$	596	$	612	$	—	$	612

Total identifiable intangible assets	$	3,686	$	(1,458)	$	2,228	$	3,737	$	(1,418)	$	2,319

(a) Intangible assets acquired in a business combination that are in-process and used in research and development (“R&D”) activities are considered indefinite-lived until the completion or abandonment of the R&D efforts. The useful life and amortization of those assets will be determined once the R&D efforts are completed.

During the second quarter of 2021, the Company purchased certain developed technology rights for an initial payment of $3 million. The purchase consideration also includes minimum guaranteed contingent payments of $17 million to be made upon reaching certain regulatory and commercial milestones, which were not yet considered probable of payment as of March 31, 2022.