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Goodwill and Other Intangible Assets
 6 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
4. Goodwill and Other Intangible Assets
Goodwill
The following table summarizes the changes in the carrying amount of goodwill by segment and in total:
(in millions)PharmaceuticalMedical (1)Total
Balance at June 30, 2022$2,673 $3,182 $5,855 
Foreign currency translation adjustments and other— (6)(6)
Goodwill impairment— (863)(863)
Balance at December 31, 2022$2,673 $2,313 $4,986 
(1)At December 31, 2022 and June 30, 2022, the Medical segment accumulated goodwill impairment loss was $4.4 billion and $3.5 billion, respectively.
Due to certain reductions in our long-term financial plan assumptions made during the three months ended December 31, 2022, including those related to Cardinal Health branded medical products sales growth, we elected to bypass the qualitative assessment and perform quantitative goodwill impairment testing for the Medical Unit. This quantitative testing resulted in the carrying amount of the Medical Unit exceeding the fair value, resulting in a pre-tax goodwill impairment charge of $709 million. The impairment charge recognized during the three months ended December 31, 2022 was driven primarily by the impact of the reductions in our long-term financial plan assumptions.
During the three months ended September 30, 2022, we performed quantitative goodwill impairment testing for the Medical Unit, which resulted in a pre-tax goodwill impairment charge of $154 million driven by an increase in the discount rate primarily due to an increase in the risk-free interest rate. The cumulative pre-tax goodwill impairment charges of $863 million were recognized in impairments and (gain)/loss on disposal of assets, net in our condensed consolidated statements of earnings/(loss) for six months ended December 31, 2022.
Our determinations of the estimated fair value of the Medical Unit at December 31, 2022 and at September 30, 2022 were based on a combination of the income-based approach (using a terminal growth rate of 2 percent), and the market-based approaches. For the income-based approach, we used discount rates of 10.5 percent for both periods. Additionally, we assigned a weighting of 80 percent to the discounted cash flow method, 10 percent to the guideline public company method, and 10 percent to the guideline transaction method. Our fair value estimates utilize significant unobservable inputs and thus represent Level 3 fair value measurements.
The carrying value of the Medical Unit at December 31, 2022 after recognizing the impairment charges was $6.2 billion, of which $1.1 billion was goodwill.
During the three months ended December 31, 2021, we performed quantitative goodwill impairment testing for the Medical Unit. This quantitative testing resulted in the carrying amount of the Medical
Unit exceeding the fair value, resulting in a pre-tax impairment charge of $1.3 billion recorded during the three months ended December 31, 2021.

Other Intangible Assets
The following tables summarize other intangible assets by class at:
December 31, 2022
(in millions)Gross
Intangible		Accumulated
Amortization		Net
Intangible		Weighted- Average Remaining Amortization Period (Years)
Indefinite-life intangibles:
Trademarks and patents$11 $— $11 N/A
Total indefinite-life intangibles11 — 11 N/A
Definite-life intangibles:
Customer relationships3,234 2,220 1,014 10
Trademarks, trade names and patents547 369 178 9
Developed technology and other1,036 607 429 9
Total definite-life intangibles4,817 3,196 1,621 10
Total other intangible assets$4,828 $3,196 $1,632 N/A
June 30, 2022
(in millions)Gross
Intangible		Accumulated
Amortization		Net
Intangible
Indefinite-life intangibles:
Trademarks and patents$11 $— $11 
Total indefinite-life intangibles11 — 11 
Definite-life intangibles:
Customer relationships3,272 2,165 1,107 
Trademarks, trade names and patents552 360 192 
Developed technology and other1,038 574 464 
Total definite-life intangibles4,862 3,099 1,763 
Total other intangible assets$4,873 $3,099 $1,774 
Total amortization of intangible assets was $71 million and $79 million for the three months ended December 31, 2022 and 2021, respectively, and $142 million and $157 million for the six months ended December 31, 2022 and 2021, respectively. Estimated annual amortization of intangible assets for the remainder of fiscal 2023 through 2027 is as follows: $147 million, $260 million, $235 million, $208 million, and $176 million.