BRISTOL MYERS SQUIBB CO | 2013 | FY | 3


Note 14. GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill were as follows:
 
 
December 31,
Dollars in Millions
 
2013
 
2012
Carrying amount of goodwill at January 1
 
$
7,635

 
$
5,586

Acquisitions:
 
 
 
 
Inhibitex
 

 
1,213

Amylin
 
11

 
836

Assets held-for-sale
 
(550
)
 

Carrying amount of goodwill at December 31
 
$
7,096

 
$
7,635



In the first quarter of 2013, the purchase price allocation was finalized for the Amylin acquisition resulting in an $11 million adjustment to goodwill and deferred income taxes. Goodwill of $550 million was allocated to the sale of the diabetes business and included in assets held-for-sale. See“—Note 5. Assets Held-For-Sale” for further discussion.

Other intangible assets include:
 
 
 
 
December 31, 2013
 
December 31, 2012
Dollars in Millions
 
Estimated
Useful Lives
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Licenses
 
5 – 15 years
 
$
1,162

 
$
637

 
$
525

 
$
1,160

 
$
534

 
$
626

Developed technology rights
 
9 – 15 years
 
2,486

 
1,482

 
1,004

 
8,827

 
1,604

 
7,223

Capitalized software
 
3 – 10 years
 
1,240

 
999

 
241

 
1,200

 
939

 
261

Total finite-lived intangible assets
 
 
 
4,888

 
3,118

 
1,770

 
11,187

 
3,077

 
8,110

IPRD
 
 
 
548

 

 
548

 
668

 

 
668

Total other intangible assets
 
 
 
$
5,436

 
$
3,118

 
$
2,318

 
$
11,855

 
$
3,077

 
$
8,778



Changes in other intangible assets were as follows:
Dollars in Millions
 
2013
 
2012
 
2011
Other intangible assets carrying amount at January 1
 
$
8,778

 
$
3,124

 
$
3,370

Capitalized software and other additions
 
80

 
60

 
75

Acquisitions
 

 
8,335

 
160

Amortization expense
 
(858
)
 
(607
)
 
(353
)
Impairment charges
 

 
(2,134
)
 
(30
)
Assets held-for-sale
 
(5,682
)
 

 

Other
 

 

 
(98
)
Other intangible assets, net carrying amount at December 31
 
$
2,318

 
$
8,778

 
$
3,124



Developed technology rights of $5,562 million and IPRD of $120 million related to the sale of the diabetes business were reclassified to assets held-for-sale as of December 31, 2013. See “—Note 5. Assets Held-For-Sale” for further discussion.

Annual amortization expense of other intangible assets is expected to be approximately $300 million in 2014, $200 million in 2015, $200 million in 2016, $200 million in 2017, $150 million in 2018 and $720 million thereafter.

BMS announced the discontinued development of BMS-986094 (formerly known as INX-189), a nucleotide polymerase (NS5B) inhibitor that was in Phase II development for the treatment of the hepatitis C virus infection in August 2012. The decision was made in the interest of patient safety, based on a rapid, thorough and ongoing assessment of patients in a Phase II study that was voluntarily suspended on August 2012. BMS acquired BMS-986094 with its acquisition of Inhibitex in February 2012. As a result of the termination of this development program, a $1,830 million pre-tax impairment charge was recognized for the IPRD intangible asset.

An impairment charge of $120 million was recognized in 2012 related to continued competitive pricing pressures and a partial write-down to fair value of developed technology rights related to a previously acquired non-key product.

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