Goodwill And Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 are as follows:



(In thousands)	Generics Segment			Specialty Segment			Total
Balance at December 31, 2012:
Goodwill	$	3,194,148		$	706,507		$	3,900,655
Accumulated impairment losses	—			(385,000		)	(385,000		)
	3,194,148			321,507			3,515,655
Goodwill acquired ⁽¹⁾	13,871			—			13,871
Transfers ⁽²⁾	(27,602		)	27,602			—
Foreign currency translation	(101,564		)	—			(101,564		)
	$	3,078,853		$	349,109		$	3,427,962
Balance at September 30, 2013:
Goodwill	$	3,078,853		$	734,109		$	3,812,962
Accumulated impairment losses	—			(385,000		)	(385,000		)
	$	3,078,853		$	349,109		$	3,427,962

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⁽¹⁾	See Note 4.


⁽²⁾	As a result of the January 1, 2013 reorganization of certain components between the Generics and Specialty segments, the Company was required to reassign a portion of the carrying amount of goodwill to the Specialty segment.

Intangible assets consist of the following components at September 30, 2013 and December 31, 2012:



(In thousands)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
September 30, 2013
Amortized intangible assets:
Patents and technologies	20	$	116,631	$	92,393	$	24,238
Product rights and licenses	10	3,396,389		1,949,185		1,447,204
Other ⁽¹⁾	8	95,729		59,828		35,901
		3,608,749		2,101,406		1,507,343
In-process research and development		415,265		—		415,265
		$	4,024,014	$	2,101,406	$	1,922,608
December 31, 2012
Amortized intangible assets:
Patents and technologies	20	$	116,631	$	88,288	$	28,343
Product rights and licenses	10	3,459,980		1,749,424		1,710,556
Other ⁽¹⁾	8	111,033		51,384		59,649
		3,687,644		1,889,096		1,798,548
In-process research and development		425,909		—		425,909
		$	4,113,553	$	1,889,096	$	2,224,457

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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 in the Condensed Consolidated Statements of Operations, for the nine months ended September 30, 2013 and 2012, was $260.6 million and $304.7 million, respectively. Amortization expense is expected to be approximately $84 million for the remainder of 2013 and $330 million, $308 million, $234 million and $190 million for the years ended December 31, 2014 through 2017, respectively, excluding the planned Agila Specialties acquisition.

Indefinite-lived intangible assets, such as the Company’s in-process research and development (“IPR&D”) assets, are tested at least annually for impairment, but they may also 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 nine months ended September 30, 2013, the Company recognized IPR&D asset impairment charges of $5.1 million, which were recorded as a component of amortization expense. During the nine months ended September 30, 2012, the Company recorded impairment charges related to IPR&D assets of $41.6 million.

During 2013 and 2012, approximately $6.5 million and $33.0 million, respectively, were reclassified from acquired IPR&D to product rights and licenses.

- 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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