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 | |||||||||
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December 31, 2011 |
$ | 806 | $ | 1,511 | $ | 2,317 | ||||||
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Additions |
161 | 21 | 182 | |||||||||
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Currency translation and other adjustments |
8 | (5 | ) | 3 | ||||||||
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December 31, 2012 |
975 | 1,527 | 2,502 | |||||||||
|
Additions |
7 | 1,622 | 1,629 | |||||||||
|
Currency translation and other adjustments |
9 | 65 | 74 | |||||||||
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December 31, 2013 |
$ | 991 | $ | 3,214 | $ | 4,205 | ||||||
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|
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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 | ||||||||||||
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December 31, 2013 |
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|
Gross other intangible assets |
$ | 2,144 | $ | 494 | $ | 465 | $ | 3,103 | ||||||||
|
Accumulated amortization |
(665 | ) | (144 | ) | — | (809 | ) | |||||||||
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|
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Other intangible assets, net |
$ | 1,479 | $ | 350 | $ | 465 | $ | 2,294 | ||||||||
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December 31, 2012 |
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Gross other intangible assets |
$ | 1,192 | $ | 280 | $ | 22 | $ | 1,494 | ||||||||
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Accumulated amortization |
(578 | ) | (102 | ) | — | (680 | ) | |||||||||
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Other intangible assets, net |
$ | 614 | $ | 178 | $ | 22 | $ | 814 | ||||||||
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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.