
(In millions)	Developed Markets		Greater China		JANZ		Emerging Markets		Total
Balance at December 31, 2018:
Goodwill	$	8,410.9	$	68.6	$	584.1	$	1,069.2	$	10,132.8
Accumulated impairment losses	(385.0)		—		—		—		(385.0)
	8,025.9		68.6		584.1		1,069.2		9,747.8

Foreign currency translation	(152.9)		(0.8)		0.7		(4.2)		(157.2)
	7,873.0		67.8		584.8		1,065.0		9,590.6
Balance at December 31, 2019:
Goodwill	8,258.0		67.8		584.8		1,065.0		9,975.6
Accumulated impairment losses	(385.0)		—		—		—		(385.0)
	7,873.0		67.8		584.8		1,065.0		9,590.6
Acquisitions	704.3		652.8		217.4		533.0		2,107.5

Foreign currency translation	607.2		17.7		61.8		(37.8)		648.9
	9,184.5		738.3		864.0		1,560.2		12,347.0
Balance at December 31, 2020
Goodwill	9,569.5		738.3		864.0		1,560.2		12,732.0
Accumulated impairment losses	(385.0)		—		—		—		(385.0)
	$	9,184.5	$	738.3	$	864.0	$	1,560.2	$	12,347.0

As a result of the Combination, the Company revised its reportable segments in the fourth quarter of 2020. The Company has four reportable segments: Developed Markets, Greater China, JANZ and Emerging Markets. Refer to Note 15 Segment Information included in Part II. Item 8 of this Form 10-K for additional information.


(In millions)	Weighted Average Life (Years)	Cost		Accumulated Amortization		Net Book Value
December 31, 2020
Product rights, licenses and other (1)	15	$	40,404.1	$	10,801.6	$	29,602.5
In-process research and development		80.7		—		80.7
		$	40,484.8	$	10,801.6	$	29,683.2
December 31, 2019
Product rights, licenses and other (1)	15	$	20,109.1	$	8,579.5	$	11,529.6
In-process research and development		120.3		—		120.3
		$	20,229.4	$	8,579.5	$	11,649.9

Product rights and licenses are primarily comprised of the products marketed at the time of acquisition. These product rights and licenses relate to numerous individual products, the net book value of which, by product category, is as follows:


(In millions)	Developed Markets		Greater China		JANZ		Emerging Markets		December 31, 2020
Brands	$	10,988.1	$	4,372.3	$	2,377.0	$	4,478.7	$	22,216.1
Complex Gx and Biosimilars	272.5		—		2.3		—		274.8
Generics	6,253.9		12.7		423.9		417.3		7,107.8
Total Product Rights and Licenses	$	17,514.5	$	4,385.0	$	2,803.2	$	4,896.0	$	29,598.7


(In millions)	Developed Markets		Greater China		JANZ		Emerging Markets		December 31, 2019
Brands	$	5,212.3	$	161.1	$	165.3	$	25.3	$	5,564.0
Complex Gx and Biosimilars	313.2		—		2.7		—		315.9
Generics	5,090.3		12.9		170.4		364.6		5,638.2
Total Product Rights and Licenses	$	10,615.8	$	174.0	$	338.4	$	389.9	$	11,518.1

Amortization expense and intangible asset impairment charges, which are included as a component of amortization expense, which is classified primarily within cost of sales in the consolidated statements of operations, for the years ended December 31, 2020, 2019 and 2018 was as follows:


	Year ended December 31,
(In millions)	2020		2019		2018
Intangible asset amortization expense	$	1,605.8	$	1,582.7	$	1,606.4
IPR&D intangible asset impairment charges	37.4		138.3		117.7
Finite-lived intangible asset impairment charges	45.0		42.3		106.3
Total intangible asset amortization expense (including impairment charges)	$	1,688.2	$	1,763.3	$	1,830.4

The assessment for impairment of finite-lived intangibles is based on our ability to recover the carrying value of the long-lived assets or asset grouping by analyzing the expected future undiscounted pre-tax cash flows specific to the asset or asset grouping. If the carrying amount is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the excess of the carrying amount over the estimated fair value based on discounted cash flows.

Significant management judgment is involved in estimating the recoverability of these assets and is dependent upon the accuracy of the assumptions used in making these estimates, as well as how the estimates compare to the eventual future operating performance of the specific asset or asset grouping. The fair value of finite-lived intangible assets was calculated as the present value of the estimated future net cash flows using a market rate of return. The assumptions inherent in the estimated future cash flows include, among other things, the impact of the current competitive environment and future market expectations. Discount rates ranging between 9.0% and 11.0% were utilized in the valuations performed during the years ended December 31, 2020, 2019 and 2018. At December 31, 2020 and 2019, the Company’s finite-lived intangible assets totaled $29.60 billion and $11.53 billion, respectively. Any future long-lived assets impairment charges could have a material impact in the Company’s consolidated financial condition and results of operations.

The Company’s IPR&D assets are tested at least annually for impairment or upon the occurrence of a triggering event. Impairment is determined to exist when the fair value of IPR&D assets, which is based upon updated forecasts and commercial development plans, is less than the carrying value of the assets being tested. The fair value of IPR&D was calculated as the present value of the estimated future net cash flows using a market rate of return. The assumptions inherent in the estimated future cash flows include, among other things, the impact of changes to the development programs, the projected development and regulatory time frames and the current competitive environment. Discount rates ranging between 9.0% and 11.0%, 9.0% and 11.0%, and 9.5% and 13.0% were utilized in the valuations performed during the years ended December 31, 2020, 2019 and 2018 respectively.

The fair value of both IPR&D and finite-lived intangible assets was determined based upon detailed valuations employing the income approach which utilized Level 3 inputs, as defined in Note 9 Financial Instruments and Risk Management. Changes to any of the Company’s assumptions including changes to or abandonment of development programs,

The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As a result of the decline in the Mylan share price during the first quarter of 2020, and the general uncertainty and volatility in the economic environments in which the Company operates, including the impacts of the COVID-19 pandemic, the Company performed an interim goodwill impairment test as of March 31, 2020. The Company performed the annual goodwill impairment test as of April 1, 2020. There were no significant changes from the interim goodwill test performed at March 31, 2020 and the results were consistent with the interim goodwill impairment test.

Mylan performed both the interim and annual goodwill impairment tests on a quantitative basis for its four reporting units, North America Generics, North America Brands, Europe and Rest of World. In estimating each reporting unit’s fair value, Mylan performed an extensive valuation analysis, utilizing both income and market-based approaches, except for the North America Brands reporting unit where the fair value was estimated utilizing the income approach. The determination of the fair value of the reporting units requires management to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, market multiples, control premiums, the discount rate, terminal growth rates, operating income before depreciation and amortization, and capital expenditures forecasts.

As of March 31, 2020 and April 1, 2020, the allocation of the goodwill among the reporting units was as follows: North America Generics $2.60 billion, North America Brands $0.65 billion, Europe $4.43 billion and Rest of World $1.65 billion.

As of March 31, 2020 and April 1, 2020, Mylan determined that the fair value of the North America Generics, North America Brands and Rest of World reporting units was substantially in excess of the respective unit’s carrying value. However, when compared to the April 1, 2019 test, the fair value of the overall business declined because of future forecasts and the decline in share price.

For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $1.2 billion or 11.0% for both the interim and annual goodwill impairment test. As it relates to the income approach for the Europe reporting unit at March 31, 2020 and April 1, 2020, the Company forecasted cash flows for the next 5 years. During the forecast period, the revenue compound annual growth rate was approximately 7.5%. A terminal year value was calculated with a 2.0% revenue growth rate applied. The discount rate utilized was 11.0% and the estimated tax rate was 25.5%. Under the market-based approach, we utilized an estimated range of market multiples of 8.0 to 9.5 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.5% or an increase in discount rate by 3.5% would result in an impairment charge for the Europe reporting unit.

Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as it relates to the key assumptions detailed, could have a significant impact on the fair value of the reporting units.