Intangible Assets

6 Months Ended

Jun. 30, 2014

6. Intangible Assets

Intangible assets, which consist of registrational and launch-related milestone fees paid or owed to GSK, were as follows:

	June 30, 2014
(In thousands)	Weighted Average Remaining Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
FDA approval and launch of BREO® ELLIPTA® in the U.S.	15.2	$	60,000	$	(2,526	)	$	57,474
MHLW approval and launch of RELVAR® ELLIPTA® in Japan	14.4	20,000		(778		)	19,222
European Commission approval and launch of RELVAR® ELLIPTA®	14.5	30,000		(1,000		)	29,000
FDA approval and launch of ANORO® ELLIPTA® in the U.S.	15.2	60,000		(652		)	59,348
European Commission approval and launch of ANORO® ELLIPTA®	15.2	30,000		(164		)	29,836
Total intangible assets		$	200,000	$	(5,120	)	$	194,880

	December 31, 2013
(In thousands)	Weighted Average Remaining Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
FDA approval and launch of BREO® ELLIPTA® in the U.S.	15.7	$	60,000	$	(632	)	$	59,368
MHLW approval and launch of RELVAR® ELLIPTA® in Japan	14.9	20,000		(111		)	19,889
European Commission approval of RELVAR® ELLIPTA®	15	15,000		—			15,000
FDA approval of ANORO® ELLIPTA® in the U.S.	15.3	30,000		—			30,000
Total intangible assets		$	125,000	$	(743	)	$	124,257

Additional information regarding these milestone fees is included in Note 3 “Collaborative Arrangements.” Amortization expense for the BREO® ELLIPTA® intangible asset for the U.S. region and the RELVAR® ELLIPTA® intangible asset for the Japan region began in the fourth quarter of 2013, the RELVAR® ELLIPTA® intangible asset for the European Union region began in the first quarter of 2014 and the ANORO® ELLIPTA® intangible assets for the U.S. and European Union regions began in the second quarter of 2014. Amortization expense is recorded as a reduction in revenue from collaborative arrangements. Amortization expense for the three months and six months ended June 30, 2014 was $2.6 million and $4.4 million. The amortization expense for the same periods in 2013 is zero. Estimated annual amortization expense of intangible assets is $10.9 million for 2014, $13.0 million for each of the years from 2015 to 2018 and $136.4 million thereafter.