XML 25 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
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, 2018
 
As of December 31, 2017
(in millions)
Gross Carrying Amount
 
Accumulated
Amortization/Write-offs
 
Gross Carrying Amount
 
Accumulated
Amortization/Write-offs
Amortizable intangible assets
 
 
 
 
 
 
 
Technology-related
$
10,197

 
$
(5,266
)
 
$
9,386

 
$
(4,880
)
Patents
520

 
(393
)
 
517

 
(379
)
Other intangible assets
1,666

 
(958
)
 
1,633

 
(838
)
 
$
12,383

 
$
(6,617
)
 
$
11,536

 
$
(6,097
)
Indefinite-lived intangible assets
 
 
 
 
 
 
 
Goodwill
$
17,811

 
$
(9,900
)
 
$
16,898

 
$
(9,900
)
IPR&D
486

 

 
278

 

Technology-related
120

 

 
120

 

 
$
18,417

 
$
(9,900
)
 
$
17,295

 
$
(9,900
)


In the third quarter of 2018, 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 2018, 2017 and 2016.

Effective January 1, 2018, we reclassified our Neuromodulation operating segment and associated goodwill balance from our MedSurg reportable segment to our Rhythm and Neuro reportable segment as discussed in Note A – Significant Accounting Policies. This change did not impact our total goodwill carrying value. The following represents our goodwill balance by global reportable segment:
(in millions)
MedSurg
 
Rhythm and Neuro
 
Cardiovascular
 
Total
Balance as of December 31, 2016
$
2,875

 
$
290

 
$
3,513

 
$
6,678

Impact of foreign currency fluctuations and other changes in carry amount
2

 
1

 
9

 
12

Goodwill acquired

 
126

 
182

 
308

Balance as of December 31, 2017
$
2,877

 
$
417

 
$
3,704

 
$
6,998

Impact of reportable segment revisions
(1,379
)
 
1,379

 

 

Impact of foreign currency fluctuations and other changes in carry amount
(3
)
 
(22
)
 
(3
)
 
(29
)
Goodwill acquired
568

 
150

 
224

 
942

Balance as of December 31, 2018
$
2,063

 
$
1,924

 
$
3,925

 
$
7,911



We did not have any goodwill impairments in 2018, 2017 or 2016.

Estimated Amortization expense for each of the five succeeding fiscal years based upon our amortizable intangible asset portfolio as of December 31, 2018 is as follows (in millions):
Fiscal Year
 
2019
$
639

2020
635

2021
599

2022
571

2023
551