GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):



	CHC			BCH			Rx			Specialty Sciences			Other			Total
Balance at June 29, 2013	$	611.6		$	—		$	385.4		$	—		$	92.2		$	1,089.2
Business acquisitions	1,297.2			—			851.0			201.8			—			2,350.0
Currency translation adjustment	7.6			—			21.9			—			5.4			34.9
Balance at June 28, 2014	1,916.4			—			1,258.3			201.8			97.6			3,474.1
Business acquisitions	4.8			1,513.1			—			—			—			1,517.9
Impairments	(6.8		)	—			—			—			—			(6.8		)
Currency translation adjustment	(9.7		)	38.8			(20.0		)	—			(9.4		)	(0.3		)
Purchase accounting adjustments	(7.2		)	—			(4.7		)	(1.1		)	—			(13.0		)
Balance at June 27, 2015	1,897.5			1,551.9			1,233.6			200.7			88.2			4,971.9
Business acquisitions	9.7			87.4			—			—			—			97.1
Transfers to assets held for sale	(13.0		)	—			—			—			(14.5		)	(27.5		)
Currency translation adjustment	(5.1		)	(46.1		)	(11.4		)	—			(2.2		)	(64.8		)
Purchase accounting adjustments	0.9			387.3			—			—			—			388.2
Balance at December 31, 2015	$	1,890.0		$	1,980.5		$	1,222.2		$	200.7		$	71.5		$	5,364.9

The increase in goodwill in the six months ended December 31, 2015 in the BCH segment was due primarily to purchase accounting adjustments to the Omega acquisition described in Note 2, as well as the Naturwohl and GSK acquisitions. The increase in goodwill in the fiscal year ended June 27, 2015 was due primarily to the Omega acquisition, which was recorded in the BCH segment. The increase in goodwill in the fiscal year ended June 28, 2014 was due primarily to the acquisition of Elan, which contributed $2.3 billion of goodwill. We allocated $2.1 billion of goodwill to the reporting units that are expected to benefit from the synergies related to the Elan transaction. See Note 2 for additional information.

No impairment charges were recorded as a result of the goodwill impairment testing during the six months ended December 31, 2015, however our Specialty Sciences reporting unit's fair value exceeded the carrying value by less than 10%. Management evaluated the primary source of cash flow in this segment, the Tysabri^® royalty stream, based on a combination of factors including independent external research, information provided from our royalty partner, and internal estimates. Based on this information, management’s assessment of future cash flow from this royalty stream have been reduced primarily due to anticipated new competitors entering the market and unfavorable currency exchange effects. Future performance different from the assumptions utilized in our quantitative analysis may further reduce the fair value of the reporting unit, which may result in the fair value no longer exceeding the carrying value.

Step one of our annual goodwill impairment testing in the fiscal year ended June 27, 2015 indicated that our CHC Mexico reporting unit's goodwill fair value was below its net book value as of March 28, 2015. As a result, we initiated the second step of the goodwill impairment test to measure the amount of impairment. Refer to Note 1 for our impairment process. We concluded that the goodwill was fully impaired and recorded an impairment of $6.8 million in our CHC segment during the three months ended June 27, 2015 in Other expense, net. No other segments were affected by this impairment charge. No impairment charge was recorded as a result of the annual goodwill impairment testing during the fiscal years ended June 28, 2014 and June 29, 2013.

Intangible Assets

Other intangible assets and the related accumulated amortization consisted of the following (in millions):



	December 31, 2015				June 27, 2015				June 28, 2014
	Gross		Accumulated Amortization		Gross		Accumulated Amortization		Gross		Accumulated Amortization
Definite-lived intangibles:
Distribution and license agreements, supply agreements	$	6,053.4	$	667.2	$	6,029.9	$	502.3	$	6,027.3	$	192.1
Developed product technology, formulations, and product rights	1,383.5		426.0		1,025.3		383.1		931.7		302.5
Customer relationships and distribution networks	1,520.7		193.0		1,749.9		146.2		372.0		97.5
Trademarks, trade names, and brands	539.4		22.8		340.8		11.5		47.8		5.6
Non-compete agreements	15.2		12.7		14.7		11.9		15.3		9.4
Total definite-lived intangibles	$	9,512.2	$	1,321.7	$	9,160.6	$	1,055.0	$	7,394.1	$	607.1
Indefinite-lived intangibles:
Trademarks, trade names, and brands	$	1,868.1	$	—	$	2,257.3	$	—	$	59.5	$	—
In-process research and development	48.2		—		5.8		—		10.2		—
Total indefinite-lived intangibles	1,916.3		—		2,263.1		—		69.7		—
Total other intangible assets	$	11,428.5	$	1,321.7	$	11,423.7	$	1,055.0	$	7,463.8	$	607.1

Certain intangible assets are denominated in currencies other than the U.S. dollars; therefore, their gross and net carrying values are subject to foreign currency movements.

The increase in gross amortizable intangible assets during the six months ended December 31, 2015 was due to the Entocort^®, GSK, Naturwohl, and ScarAway^® acquisitions, offset partially by purchase price adjustments to the Omega intangible assets discussed in Note 2. The increase during the fiscal year ended June 27, 2015 was due primarily to the Omega acquisition.

During our impairment testing for the six months ended December 31, 2015, we identified an impairment of certain indefinite-lived intangible assets based on management’s expectations of the prospects for future revenues, profits, and cash flows associated with these assets. The indefinite-lived intangible assets were purchased in conjunction with the Omega acquisition and are included in the BCH segment. The assessment utilized the excess earnings method to determine fair value and resulted in an impairment charge of $185.1 million, which represents the difference between the carrying amount of the intangible assets and their estimated fair value. The amount was recorded in Impairment charges on the Consolidated Statements of Operations within the BCH segment. The primary assumptions supporting the fair value of these assets and cash flow projections assume modest revenue growth based on product line extensions, product life cycle strategies, and geographical expansion within the markets in which the BCH segment currently distributes products, and gross margins and advertising and promotion investments largely consistent with historical trends. Actual performance different from the assumptions utilized in our quantitative analysis may result in additional changes in fair value of these assets.

No material impairment charges were recorded as a result of the annual intangible asset impairment testing during the fiscal years ended June 27, 2015, June 28, 2014, and June 29, 2013. We did record an impairment charge of $6.0 million and $9.0 million on certain IPR&D assets during the fiscal years ended June 28, 2014 and June 29, 2013, respectively, due to changes in the projected development and regulatory timelines for various projects.

During the fiscal year ended June 28, 2014, the remaining $13.0 million of IPR&D assets acquired as part of the Paddock acquisition was reclassified to a definite-lived developed product technology intangible asset and is being amortized on a proportionate basis consistent with the economic benefits derived therefrom over an estimated useful life of 12 years.

The remaining weighted-average useful life for our amortizable intangible assets by asset class at December 31, 2015 was as follows:



Amortizable Intangible Asset Category		Remaining Weighted-Average Useful Life (Years)
Distribution and license agreements, supply agreements		19
Developed product technology, formulations, and product rights		10
Customer relationships and distribution networks		17
Trademarks, trade names, and brands		21
Non-compete agreements		2

We recorded amortization expense of $274.1 million during the six months ended December 31, 2015, and $464.5 million, $281.0 million, and $94.0 million during the fiscal years ended June 27, 2015, June 28, 2014, and June 29, 2013, respectively. The increase in amortization expense in the six months ended December 31, 2015 was due primarily to definite-lived assets acquired from Omega. The increase in amortization expense in the fiscal year ended June 27, 2015 was due primarily to the incremental amortization expense incurred on the definite-lived intangible assets acquired from Elan, as well the inclusion of one quarter of amortization expense related to the intangible assets acquired from Omega. The increase in amortization expense during the fiscal year ended June 28, 2014 was due to the Elan acquisition.

Estimated future amortization expense includes the additional amortization related to recently acquired intangible assets subject to amortization. Our estimated future amortization expense is as follows (in millions):



Year	Amount
2016	$	603.1
2017	595.6
2018	582.6
2019	558.3
2020	522.5
Thereafter	5,328.4