XML 118 R41.htm IDEA: XBRL DOCUMENT v2.4.1.9
Goodwill And Other Intangibles (Tables)
 12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of changes in the carrying amount of goodwill
Changes in the carrying amount of our goodwill for the year ended December 31, 2014 were as follows (in thousands):
 
 
 
U.S. Branded Pharmaceuticals
 
U.S. Generic Pharmaceuticals
 
International Pharmaceuticals
 
Total Consolidated
Balance as of December 31, 2013:
 
 
 
 
 
 
 
Goodwill
$
290,793

 
$
275,201

 
$
—

 
$
565,994

Accumulated impairment losses
—

 
—

 
—

 
—

 
$
290,793

 
$
275,201

 
$
—

 
$
565,994

Goodwill acquired during the period
841,139

 
796,436

 
738,862

 
2,376,437

Effect of currency translation
—

 
—

 
(42,844
)
 
(42,844
)
Balance as of December 31, 2014:
 
 
 
 
 
 
 
Goodwill
1,131,932

 
1,071,637

 
696,018

 
2,899,587

Accumulated impairment losses
—

 
—

 
—

 
—

 
$
1,131,932

 
$
1,071,637

 
$
696,018

 
$
2,899,587
Schedule of other intangible assets
The following is a summary of other intangibles held by the Company at December 31, 2014 and December 31, 2013 (in thousands):
Cost basis:
Balance as of December 31, 2013
 
Acquisitions
(1)
 
Impairments
(2)
 
Other
(3)
 
Effect of Currency Translation
 
Balance as of December 31, 2014
Indefinite-lived intangibles:
 
 
 
 
 
 
 
 
 
 
 
In-process research and development
$
67,400

 
$
173,700

 
$
(5,900
)
 
$
(45,000
)
 
$
(5,602
)
 
$
184,598

Total indefinite-lived intangibles
$
67,400

 
$
173,700

 
$
(5,900
)
 
$
(45,000
)
 
$
(5,602
)
 
$
184,598

Definite-lived intangibles:
 
 
 
 
 
 
 
 
 
 
 
Licenses (weighted average life of 9 years)
$
587,127

 
$
—

 
$
—

 
$
77,240

 
$
—

 
$
664,367

Tradenames (weighted average life of 15 years)
20,000

 
1,500

 
—

 
—

 
(185
)
 
21,315

Developed technology (weighted average life of 13 years)
838,901

 
1,470,172

 
(23,500
)
 
5,812

 
(48,169
)
 
2,243,216

Total definite-lived intangibles (weighted average life of 12 years)
$
1,446,028

 
$
1,471,672

 
$
(23,500
)
 
$
83,052

 
$
(48,354
)
 
$
2,928,898

Total other intangibles
$
1,513,428

 
$
1,645,372

 
$
(29,400
)
 
$
38,052

 
$
(53,956
)
 
$
3,113,496

 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortization:
Balance as of December 31, 2013
 
Amortization
 
Impairments
(2)
 
Other
(3)
 
Effect of Currency Translation
 
Balance as of December 31, 2014
Indefinite-lived intangibles:
 
 
 
 
 
 
 
 
 
 
 
In-process research and development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Total indefinite-lived intangibles
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Definite-lived intangibles:
 
 
 
 
 
 
 
 
 
 
 
Licenses
$
(357,439
)
 
$
(68,974
)
 
$
—

 
$
—

 
$
—

 
$
(426,413
)
Tradenames
(4,088
)
 
(1,378
)
 
—

 
—

 
4

 
(5,462
)
Developed technology
(204,435
)
 
(148,360
)
 
3,190

 
—

 
1,177

 
(348,428
)
Total definite-lived intangibles
$
(565,962
)
 
$
(218,712
)
 
$
3,190

 
$
—

 
$
1,181

 
$
(780,303
)
Total other intangibles
$
(565,962
)
 
$
(218,712
)
 
$
3,190

 
$
—

 
$
1,181

 
$
(780,303
)
Net other intangibles
$
947,466

 
 
 
 
 
 
 
 
 
$
2,333,193

__________
(1)
Includes intangible assets acquired in connection with the acquisitions of Boca, Paladin, Sumavel® DosePro®, Somar, DAVA and Natesto™. See Note 5. Acquisitions for further information.
(2)
We assessed the value of certain other in-process research and development assets and determined that approximately $5.9 million was impaired. The $23.5 million impairment relates to the write-off of a definite-lived license intangible asset related to Opana® ER. See further information below under the caption “Impairments.”
(3)
On March 6, 2014, we announced that the FDA approved Aveed® for the treatment of hypogonadism in adult men. Upon approval, the Company reclassified the intangible asset, with a balance of $35.0 million, from IPR&D to Licenses. At this time, the Company also capitalized an additional milestone payment of $5.0 million related to the approval of Aveed®. See Note 11. License and Collaboration Agreements for further information. Pursuant to the Company’s Voltaren® Gel Agreement with Novartis, we renewed the agreement for an additional one-year period during 2014, and as a result, we capitalized an intangible asset valued at $37.5 million. See Note 11. License and Collaboration Agreements for further information. During the third quarter of 2014, certain IPR&D assets totaling $10.0 million were put into service. During the third quarter of 2014, the Company divested its Canadian rights to Oralair, an intangible asset acquired during the Paladin acquisition, for total proceeds of approximately $4.2 million.
Amortization expense for the years ended December 31, 2014, 2013 and 2012 totaled $218.7 million, $124.1 million and $147.5 million, respectively. Estimated amortization of intangibles for the five years subsequent to December 31, 2014 is as follows (in thousands):
2015
$
253,391

2016
$
203,218

2017
$
194,225

2018
$
193,959

2019
$
178,670
Schedule of changes in gross carrying amount of other intangible assets
Changes in the gross carrying amount of our other intangibles for the year ended December 31, 2014 were as follows (in thousands):
 
Gross
Carrying
Amount
December 31, 2013
$
1,513,428

Aveed® approval milestone
5,000

Paladin acquisition
674,248

Boca acquisition
140,900

Sumavel acquisition
90,024

Somar acquisition
169,300

DAVA acquisition
514,900

Natesto™ acquisition
56,000

Intangible assets sold
(4,448
)
Voltaren® Gel license extension
37,500

Opana® ER license write-off
(23,500
)
Other in-process research and development asset impairment
(5,900
)
Effect of currency translation
(53,956
)
December 31, 2014
$
3,113,496