Note 8. Goodwill and Intangible Assets

On August 17, 2018, JSP notified the Company that it would not extend or renew the JSP Distribution Agreement when the current term expired on March 23, 2019. The Company determined that JSP’s decision represented a triggering event under U.S. GAAP to perform an analysis to determine the potential for impairment of goodwill. On October 4, 2018, the Company completed the analysis based on market data and concluded a full impairment of goodwill, totaling $339.6 million, was required.

Intangible assets, net as of June 30, 2020 and June 30, 2019, consisted of the following:


	Weighted	Gross Carrying Amount				Accumulated Amortization				Intangible Assets, Net
	Avg. Life	June 30,		June 30,		June 30,		June 30,		June 30,		June 30,
(In thousands)	(Yrs.)	2020		2019		2020		2019		2020		2019
Definite-lived:
KUPI product rights	15		416,154		416,154		(125,327)		(97,583)		290,827		318,571
KUPI trade name	2		2,920		2,920		(2,920)		(2,920)		—		—
KUPI other intangible assets	15		19,000		19,000		(5,828)		(4,562)		13,172		14,438
Silarx product rights	15		20,000		10,000		(3,556)		(2,722)		16,444		7,278
Other product rights	10		50,718		39,160		(5,426)		(4,667)		45,292		34,493
Total definite-lived		$	508,792	$	487,234	$	(143,057)	$	(112,454)	$	365,735	$	374,780

Indefinite-lived:
KUPI in-process research and development	—	$	9,000	$	18,000	$	—	$	—	$	9,000	$	18,000
Silarx in-process research and development	—		—		18,000		—		—		—		18,000
Other product rights	—		—		449		—		—		—		449
Total indefinite-lived			9,000		36,449		—		—		9,000		36,449
Total intangible assets, net		$	517,792	$	523,683	$	(143,057)	$	(112,454)	$	374,735	$	411,229

For the fiscal years ended June 30, 2020, 2019 and 2018, the Company recorded amortization expense of $32.0 million, $32.2 million and $32.7 million, respectively.

In the fourth quarter of Fiscal 2020, the Company performed its annual impairment test of our indefinite-lived intangible assets. As a result, the Company recorded a $9.0 million and an $8.0 million impairment charge to its KUPI IPR&D and Silarx IPR&D assets, respectively, due to the abandonment of several pipeline products within both portfolios. The Company also reclassed $10.0 million of Silarx IPR&D assets into Silarx product rights and the Company began amortization of the assets over a useful life of 15 years in Fiscal 2020.

In the third quarter of Fiscal 2020, the Company performed an impairment analysis of its AB-rated Methylphenidate Hydrochloride product, which is distributed under a license agreement with Andor Pharmaceuticals, LLC (“Andor”), due to additional competition resulting in a significant decline in sales and overall profitability of the distribution arrangement. The analysis resulted in the Company recording a $14.0 million impairment charge. The remaining carrying value of the intangible asset as of June 30, 2020, totaling $2.1 million, is recorded within the definite-lived “other product rights” caption in the table above and will continue to be amortized over its remaining useful life.

The Company previously entered into a distribution and supply agreement with Dexcel Pharma Technologies to distribute Venlafaxine XR upon FDA approval. In the second quarter of Fiscal 2020, Dexcel Pharma Technologies received FDA approval and the Company initiated commercial launch of the product. The Company paid total consideration of $3.0 million upon reaching certain milestones, which is included within the “Other product rights” category of definite-lived intangible assets.

In July 2019, the Company entered into a distribution and supply agreement with Cediprof, Inc. The Company made an upfront payment of $20.0 million to distribute Levothyroxine Sodium Tablets USP, commencing no later than August 1, 2022, which is included within the “Other product rights” category of definite-lived intangible assets. In August 2019, the Company entered into a distribution and supply agreement with Sinotherapeutics Inc. to distribute Posaconazole Delayed-Release Tablets 100mg. The Company paid $2.0 million upon FDA approval of the product and $1.5 million upon the first commercial sale of the product, which is included within the “Other product rights” category of definite-lived intangible assets.

Future annual amortization expense consists of the following:


(In thousands)	Amortization
Fiscal Year Ending June 30,	Expense
2021	$	34,068
2022		35,668
2023		35,367
2024		35,067
2025		34,667
Thereafter		190,898
	$	365,735