Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the three months ended March 31, 2014 are as follows:



(In millions)	Generics Segment		Specialty Segment			Total
Balance at December 31, 2013:
Goodwill	$	3,939.0	$	734.1		$	4,673.1
Accumulated impairment losses	—		(385.0		)	(385.0		)
	3,939.0		349.1			4,288.1
Purchase price allocation adjustment ⁽¹⁾	48.6		—			48.6
Foreign currency translation	22.9		—			22.9
	$	4,010.5	$	349.1		$	4,359.6
Balance at March 31, 2014:
Goodwill	$	4,010.5	$	734.1		$	4,744.6
Accumulated impairment losses	—		(385.0		)	(385.0		)
	$	4,010.5	$	349.1		$	4,359.6

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⁽¹⁾	See Note 3.

Intangible assets consist of the following components at March 31, 2014 and December 31, 2013:



(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
March 31, 2014
Amortized intangible assets:
Patents and technologies	20	$	116.6	$	95.1	$	21.5
Product rights and licenses	10	3,600.0		2,118.3		1,481.7
Other ⁽¹⁾	8	174.2		63.8		110.4
		3,890.8		2,277.2		1,613.6
In-process research and development		848.9		—		848.9
		$	4,739.7	$	2,277.2	$	2,462.5
December 31, 2013
Amortized intangible assets:
Patents and technologies	20	$	116.6	$	93.8	$	22.8
Product rights and licenses	10	3,559.5		2,018.1		1,541.4
Other ⁽¹⁾	8	174.0		59.4		114.6
		3,850.1		2,171.3		1,678.8
In-process research and development		839.1		—		839.1
		$	4,689.2	$	2,171.3	$	2,517.9

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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 three months ended March 31, 2014 and 2013, was $92.6 million and $91.5 million, respectively. Amortization expense is expected to be approximately $269 million for the remainder of 2014 and $351 million, $269 million, $224 million and $176 million for the years ended December 31, 2015 through 2018, respectively.

Indefinite-lived intangible assets, such as the Company’s 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 three months ended March 31, 2013, the Company recorded impairment charges related to IPR&D assets of $5.1 million.

During the three months ended March 31, 2014 and 2013, approximately $6.9 million and $6.5 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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