Goodwill And Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2012 are as follows:



(In thousands)	Generics Segment			Specialty Segment			Total
Balance at December 31, 2011:
Goodwill	$	3,196,428		$	706,507		$	3,902,935
Accumulated impairment losses	—			(385,000		)	(385,000		)
	3,196,428			321,507			3,517,935
Foreign currency translation	(50,011		)	—			(50,011		)
	3,146,417			321,507			3,467,924
Balance at June 30, 2012:
Goodwill	3,146,417			706,507			3,852,924
Accumulated impairment losses	—			(385,000		)	(385,000		)
	$	3,146,417		$	321,507		$	3,467,924

Intangible assets consist of the following components:



(In thousands)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
June 30, 2012
Amortized intangible assets:
Patents and technologies	20	$	116,631	$	85,551	$	31,080
Product rights and licenses	10	3,424,613		1,548,888		1,875,725
Other ⁽¹⁾	8	180,801		50,858		129,943
		3,722,045		1,685,297		2,036,748
IPR&D		454,629		—		454,629
		$	4,176,674	$	1,685,297	$	2,491,377
December 31, 2011
Amortized intangible assets:
Patents and technologies	20	$	116,631	$	82,815	$	33,816
Product rights and licenses	10	3,364,263		1,418,492		1,945,771
Other ⁽¹⁾	8	200,663		45,604		155,059
		3,681,557		1,546,911		2,134,646
IPR&D		496,101		—		496,101
		$	4,177,658	$	1,546,911	$	2,630,747

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⁽¹⁾	Other intangible assets consist principally of customer lists and contracts.

Amortization expense, which is classified primarily within cost of sales on Mylan’s Condensed Consolidated Statements of Operations, for the six months ended June 30, 2012 and June 30, 2011 was $175.0 million and $170.7 million, respectively, and is expected to be approximately $171 million for the remainder of 2012 and $338 million, $331 million, $308 million and $241 million for the years ended December 31, 2013 through 2016, respectively.

Indefinite-lived intangibles, such as the Company’s IPR&D assets, are tested at least annually for impairment, but may be tested whenever certain impairment indicators are present. Impairment is determined to exist when the fair value is less than the carrying value of the assets being tested.

During the six months ended June 30, 2012, approximately $33.0 million was reclassified from acquired IPR&D to product rights and licenses. Also during the six months ended June 30, 2012, the Company paid approximately $70.0 million to acquire products rights and licenses, the majority of which relates to two dermatological products acquired from Valeant Pharmaceuticals.

- 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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