v3.26.1
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill for the six months ended June 30, 2026 are as follows:
(In millions)
Developed Markets (1)
Greater China
JANZ (2)
Emerging Markets (3)
Total
Balance at December 31, 2025:5,024.5 933.2 — 797.0 6,754.7 
Foreign currency translation(106.2)5.9 — — (100.3)
Balance at June 30, 2026:$4,918.3 $939.1 $— $797.0 $6,654.4 
____________
(1)Balances as of June 30, 2026 and December 31, 2025 include an accumulated impairment loss of $3.19 billion.
(2)Balances as of June 30, 2026 and December 31, 2025 include an accumulated impairment loss of $651.8 million.
(3)Balances as of June 30, 2026 and December 31, 2025 include an accumulated impairment loss of $499.0 million.

The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable.

The Company performed the annual goodwill impairment test as of April 1, 2026. The Company performed its annual goodwill impairment test on a quantitative basis for its four reporting units with remaining goodwill (North America, Europe, Emerging Markets, and Greater China). In estimating each reporting unit’s fair value, the Company performed an extensive valuation analysis, utilizing a discounted cash flow approach. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, the discount rate, terminal growth rates, operating income before depreciation and amortization, capital expenditures forecasts and control premium. As of April 1, 2026, the Company’s North America and Emerging Markets reporting units each had fair values in excess of 10% of the respective unit’s carrying value, and the Company’s Europe and Greater China reporting units each had fair values in excess of 40% of the respective unit’s carrying value.

As of April 1, 2026, the allocation of the Company’s total goodwill was as follows: North America $2.40 billion, Europe $2.57 billion, Emerging Markets $0.80 billion, and Greater China $0.94 billion.
Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as they relate to the key assumptions detailed, could have a significant impact on the fair value of the reporting units.
During the first quarter of 2025, the Company experienced a sharp and sustained decline in its share price and significantly increased uncertainty and volatility in the geopolitical and economic environments in which the Company operates. As a result of these factors, the Company determined that a triggering event had occurred for each of its reporting units and performed an interim goodwill impairment test as of March 31, 2025 and recorded a non-cash goodwill impairment charge of $2.94 billion as a result of the interim goodwill impairment test performed. After the goodwill impairment charge recorded during the first quarter of 2025, there was no remaining goodwill allocated to the JANZ reporting unit.
Intangible Assets, Net
Intangible assets consist of the following components at June 30, 2026 and December 31, 2025:
(In millions)Weighted Average Life (Years)Original CostAccumulated AmortizationNet Book Value
June 30, 2026
Product rights, licenses and other (1)
13$33,819.6 $20,848.7 $12,970.9 
In-process research and development706.0 — 706.0 
$34,525.6 $20,848.7 $13,676.9 
December 31, 2025
Product rights, licenses and other (1)
13$34,506.8 $20,110.7 $14,396.1 
In-process research and development706.0 — 706.0 
$35,212.8 $20,110.7 $15,102.1 
____________
(1)Represents amortizable intangible assets. Other intangible assets consist principally of customer lists and contractual rights.

Amortization expense, intangible impairment charges and IPR&D intangible asset impairment charges (which are included as a component of amortization expense) are classified primarily within Cost of Sales in the condensed consolidated statements of operations and were as follows for the three and six months ended June 30, 2026 and 2025:
Three Months EndedSix Months Ended
June 30,June 30,
(In millions)2026202520262025
Intangible asset amortization expense$571.9 $583.3 $1,156.5 $1,154.5 
Intangible asset impairment charges7.4 — 7.4 — 
IPR&D intangible asset impairment charges
— 2.2 — 2.2 
Total intangible asset amortization expense (including impairment charges)$579.3 $585.5 $1,163.9 $1,156.7 

Intangible asset amortization expense over the remainder of 2026 and for the years ending December 31, 2027 through 2030 is estimated to be as follows:
(In millions)
2026$1,132 
20272,034 
20281,779 
20291,190 
20301,184