Intangible Assets

9 Months Ended

Sep. 30, 2014

5. Intangible Assets

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

	September 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.	16.0	$	60,000	$	(3,411	)	$	56,589
Minister of Health, Labor and Welfare (“MHLW”) approval and launch of RELVAR® ELLIPTA® in Japan	14.2	20,000		(1,111		)	18,889
European Commission approval and launch of RELVAR® ELLIPTA®	14.3	30,000		(1,500		)	28,500
FDA approval and launch of ANORO® ELLIPTA® in the U.S.	16.0	60,000		(1,565		)	58,435
European Commission approval and launch of ANORO® ELLIPTA®	14.9	30,000		(656		)	29,344
MHLW approval and launch of ANORO® ELLIPTA® in Japan	15.0	20,000		(111		)	19,889
Total intangible assets		$	220,000	$	(8,354	)	$	211,646

	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®	15.0	15,000		—			15,000
FDA approval of ANORO® ELLIPTA® in the U.S.	15.2	30,000		—			30,000
Total intangible assets		$	125,000	$	(743	)	$	124,257

These milestone fees are being amortized over their estimated useful lives commencing upon the commercial launch of the product in their respective regions with the amortization expense recorded as a reduction in revenue from collaborative arrangements. Additional information regarding these milestone fees is included in Note 3, “Collaborative Arrangements.” Amortization expense for the three months and nine months ended September 30, 2014 was $3.2 million and $7.6 million. The amortization expense for the same periods in 2013 is zero. The remaining estimated amortization expense of intangible assets is $3.5 million for 2014, $13.8 million for each of the years from 2015 to 2018 and $152.9 million thereafter.