Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE C – GOODWILL AND OTHER INTANGIBLE ASSETS

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 are as follows:



	As of December 31, 2017					As of December 31, 2016
	Gross Carrying		Accumulated Amortization/			Gross Carrying		Accumulated Amortization/
(in millions)	Amount		Write-offs			Amount		Write-offs
Amortizable intangible assets
Technology-related	$	9,386	$	(4,880	)	$	9,123	$	(4,468	)
Patents	517		(379		)	529		(374		)
Other intangible assets	1,633		(838		)	1,583		(722		)
	$	11,536	$	(6,097	)	$	11,235	$	(5,564	)
Unamortizable intangible assets
Goodwill	$	16,898	$	(9,900	)	$	16,578	$	(9,900	)
IPR&D	278		—			92		—
Technology-related	120		—			120		—
	$	17,295	$	(9,900	)	$	16,790	$	(9,900	)

In the third quarter of 2017, we performed our annual impairment test of all IPR&D projects and our indefinite-lived core technology assets and determined that the assets were not impaired. In addition, we verified the classification as indefinite-lived assets continues to be appropriate. Intangible asset impairment charges were immaterial in 2017, 2016 and 2015.

The following represents our goodwill balance by global reportable segment:



(in millions)	Cardiovascular		Rhythm Management			MedSurg			Total
Balance as of December 31, 2015	$	3,451	$	292		$	2,730		$	6,473
Impact of foreign currency fluctuations and other changes in carry amount	—		(2		)	(1		)	(3		)
Goodwill acquired	62		—			146			208
Balance as of December 31, 2016	$	3,513	$	290		$	2,875		$	6,678
Impact of foreign currency fluctuations and other changes in carry amount	9		1			2			12
Goodwill acquired	182		126			—			308
Balance as of December 31, 2017	$	3,704	$	417		$	2,877		$	6,998

We did not have any goodwill impairments in 2017, 2016 or 2015.

Estimated amortization expense for each of the five succeeding fiscal years based upon our amortizable intangible asset portfolio as of December 31, 2017 is as follows:



Fiscal Year	(in millions)
2018	$	551
2019	546
2020	543
2021	507
2022	477

- 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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