XML 42 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Goodwill and Other Intangible Assets Goodwill (Tables)
6 Months Ended
Jun. 30, 2012
Goodwill [Line Items]  
Description of unobservable inputs used in Level 3 fair value measurements [Table Text Block]
The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:

Contingent Consideration Liability
Fair Value as of June 30, 2012
Valuation Technique
Unobservable Input
Range
R&D, Regulatory and Commercialization-based Milestones
$311 million
Probability Weighted Discounted Cash Flow
Discount Rate
1.1% - 2.9%
Probability of Payment
38% - 95%
Projected Year of Payment
2012 - 2017
Revenue-based Payments
$196 million
Discounted Cash Flow
Discount Rate
12.0% - 19.5%
Probability of Payment
65% - 100%
Projected Year of Payment
2012 - 2018
$117 million
Monte Carlo
Probability of Payment
95%
Risk Free Rate
LIBOR Term Structure
Projected Year of Payment
2013-2018
The nonrecurring Level 3 fair value measurements of our 2012 intangible asset impairment analysis included the following significant unobservable inputs:

Intangible Asset
Fair Value as of June 30, 2012
Valuation Technique
Unobservable Input
Range
In-Process R&D
$184 million
Income Approach - Excess Earnings Method
Discount Rate
20%
Schedule of Goodwill [Table Text Block]
The following is a rollforward of accumulated goodwill write-offs by reportable segment:
 
United
 
 
 
 
 
Inter-
 
 
(in millions)
States
 
EMEA
 
Japan
 
Continental
 
Total
Accumulated write-offs as of December 31, 2011
$
(5,127
)
 
 
 
 
 
 
 
$
(5,127
)
Goodwill written off
 
 
$
(3,602
)
 
 
 
 
 
(3,602
)
Accumulated write-offs as of June 30, 2012
$
(5,127
)
 
$
(3,602
)
 

 

 
$
(8,729
)
Goodwill
The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated write-offs of goodwill as of June 30, 2012 and December 31, 2011 is as follows:
 
 
As of
 
 
June 30, 2012
 
December 31, 2011
 
 
Gross Carrying
 
Accumulated
Amortization/
 
Gross Carrying
 
Accumulated
Amortization/
(in millions)
 
Amount
 
Write-offs
 
Amount
 
Write-offs
Amortizable intangible assets
 
 
 
 
 
 
 
 
Technology - core
 
$
6,786

 
$
(1,872
)
 
$
6,786

 
$
(1,722
)
Technology - developed
 
1,076

 
(1,016
)
 
1,037

 
(1,012
)
Patents
 
546

 
(342
)
 
539

 
(331
)
Other intangible assets
 
812

 
(402
)
 
808

 
(376
)
 
 
$
9,220

 
$
(3,632
)
 
$
9,170

 
$
(3,441
)
Unamortizable intangible assets
 
 
 
 
 
 
 
 
Goodwill
 
$
15,203

 
$
(8,729
)
 
$
14,888

 
$
(5,127
)
Technology - core
 
242

 
 
 
242

 
 
Purchased research and development
 
419

 
 
 
502

 
 
 
 
$
15,864

 
$
(8,729
)
 
$
15,632

 
$
(5,127
)