Goodwill And Other Intangibles

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9. GOODWILL AND OTHER INTANGIBLES

Goodwill

Changes in the carrying amount of our goodwill for the nine months ended September 30, 2014 were as follows:



	Carrying Amount
	U.S. Branded Pharmaceuticals		U.S. Generic Pharmaceuticals		Devices			International Pharmaceuticals			Total Consolidated
Balance as of December 31, 2013:
Goodwill	$	290,793	$	275,201	$	1,795,366		$	—		$	2,361,360
Accumulated impairment losses	—		—		(988,528		)	—			(988,528		)
	$	290,793	$	275,201	$	806,838		$	—		$	1,372,832
Goodwill acquired during the period	816,376		690,119		27,156			916,704			2,450,355
Effect of currency translation	—		—		(2,923		)	(15,305		)	(18,228		)
Balance as of September 30, 2014:
Goodwill	1,107,169		965,320		1,819,599			901,399			4,793,487
Accumulated impairment losses	—		—		(988,528		)	—			(988,528		)
	$	1,107,169	$	965,320	$	831,071		$	901,399		$	3,804,959

During the third quarter of 2014, we received expressions of interest from third parties related to our AMS business. As a result, the Company initiated an interim goodwill impairment analysis of the AMS reporting unit. The fair value of the AMS reporting unit was estimated using a number of factors including the use of a discounted cash flow model and the expressions of interest received from third parties during the third quarter of 2014. The Company determined that no impairment existed as of September 30, 2014 as the estimated fair value of the AMS reporting unit exceeded its net book value.

Other Intangible Assets

The following is a summary of other intangibles held by the Company at September 30, 2014 and December 31, 2013 (in thousands):



	September 30, 2014							December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived intangibles:
In-process research and development	$	315,817	$	—		$	315,817	$	73,400	$	—		$	73,400
Total indefinite-lived intangibles	$	315,817	$	—		$	315,817	$	73,400	$	—		$	73,400
Definite-lived intangibles:
Licenses (weighted average life of 9 years)	$	626,867	$	(408,159	)	$	218,708	$	587,127	$	(357,439	)	$	229,688
Customer relationships (weighted average life of 16 years)	156,754		(32,806		)	123,948		158,258		(25,574		)	132,684
Tradenames (weighted average life of 24 years)	77,000		(12,654		)	64,346		77,000		(9,934		)	67,066
Developed technology (weighted average life of 15 years)	2,889,628		(478,484		)	2,411,144		1,720,428		(350,340		)	1,370,088
Total definite-lived intangibles (weighted average life of 14 years)	$	3,750,249	$	(932,103	)	$	2,818,146	$	2,542,813	$	(743,287	)	$	1,799,526
Total other intangibles	$	4,066,066	$	(932,103	)	$	3,133,963	$	2,616,213	$	(743,287	)	$	1,872,926

Changes in the gross carrying amount of our other intangibles for the nine months ended September 30, 2014 were as follows (in thousands):



	Gross Carrying Amount
December 31, 2013	$	2,616,213
Aveed® approval milestone	5,000
Paladin acquisition	650,248
Boca acquisition	165,900
Sumavel acquisition	84,400
Somar acquisition	128,000
DAVA acquisition	439,623
Intangible assets sold	(4,248		)
Effect of currency translation	(19,070		)
September 30, 2014	$	4,066,066

The December 31, 2013 amounts above related to both the gross amount and related accumulated amortization for license intangible assets within the Other Intangible Assets summary and the total other intangible gross amount within the Gross Carrying Amount roll-forward have been revised from amounts previously disclosed within our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 3, 2014. The purpose of this revision was to remove approximately $47.1 million from both the gross amount and corresponding accumulated amortization for intangible assets that were fully amortized as of December 31, 2013. These adjustments had no impact on the reported net other intangible assets and the revision did not impact the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive (Loss) Income or Condensed Consolidated Statements of Cash Flows as of and for the year ended December 31, 2013.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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