BAXTER INTERNATIONAL INC | 2013 | FY | 3


NOTE 5

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

 

 

Goodwill

The following is a summary of the activity in goodwill by segment.

 

(in millions)    BioScience     

Medical

Products

    Total  

 

 

December 31, 2011

   $ 806       $ 1,511      $ 2,317   

Additions

     161         21        182   

Currency translation and other adjustments

     8         (5     3   

 

 

December 31, 2012

     975         1,527        2,502   

Additions

     7         1,622        1,629   

Currency translation and other adjustments

     9         65        74   

 

 

December 31, 2013

   $ 991       $ 3,214      $ 4,205   

 

 

Goodwill additions in 2013 principally related to the third quarter acquisition of Gambro in the Medical Products segment and the first quarter acquisition of the Inspiration / Ipsen OBI-1 business in the BioScience segment. Goodwill additions in 2012 principally related to the acquisition of Synovis and an additional $19 million from the 2012 acquisition of Laboratoire Fasonut (Fasonut), a privately-held French pharmaceutical company specializing in parenteral nutrition compounding for hospitals, in which Baxter had previously held a 20% equity interest. Synovis is included in the BioScience segment and Fasonut is included in the Medical Products segment. See Note 4 for further information.

As of December 31, 2013, there were no accumulated goodwill impairment losses.

 

Other Intangible Assets, Net

The following is a summary of the company’s other intangible assets.

 

(in millions)   

Developed technology,

including patents

   

Other amortized

intangible assets

   

Indefinite-lived

intangible assets

     Total  

 

 

December 31, 2013

         

Gross other intangible assets

   $ 2,144      $   494      $ 465       $ 3,103   

Accumulated amortization

     (665     (144             (809

 

 

Other intangible assets, net

   $    1,479      $ 350      $ 465       $    2,294   

 

 

December 31, 2012

         

Gross other intangible assets

   $ 1,192      $ 280      $ 22       $ 1,494   

Accumulated amortization

     (578     (102             (680

 

 

Other intangible assets, net

   $ 614      $ 178      $ 22       $ 814   

 

 

Intangible asset amortization expense was $129 million in 2013, $101 million in 2012 and $81 million in 2011. The anticipated annual amortization expense for intangible assets recorded as of December 31, 2013 is $182 million in 2014, $180 million in 2015, $177 million in 2016, $159 million in 2017 and $154 million in 2018.

Refer to Note 4 for further information regarding significant acquisitions impacting other intangible assets, net.


us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock