Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2011

8.	Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2011 are as follows:


	Generics Segment		Specialty Segment			Total
	(In thousands)
Balance at December 31, 2010
Goodwill	$	3,277,827	$	706,507		$	3,984,334
Accumulated impairment losses		—		(385,000	)		(385,000	)

		3,277,827		321,507			3,599,334
Foreign currency translation		159,577		—			159,577

		3,437,404		321,507			3,758,911
Balance at June 30, 2011
Goodwill		3,437,404		706,507			4,143,911
Accumulated impairment losses		—		(385,000	)		(385,000	)

	$	3,437,404	$	321,507		$	3,758,911

Intangible assets consist of the following components:


	Weighted Average Life (Years)		Original Cost		Accumulated Amortization		Net Book Value


			(In thousands)
June 30, 2011
Amortized intangible assets:
Patents and technologies		20	$	116,631	$	80,079	$	36,552
Product rights and licenses		10		3,508,221		1,318,100		2,190,121
Other⁽¹⁾		8		120,193		46,748		73,445

				3,745,045		1,444,927		2,300,118

IPR&D				144,150		—		144,150

			$	3,889,195	$	1,444,927	$	2,444,268

December 31, 2010
Amortized intangible assets:
Patents and technologies		20	$	122,926	$	83,563	$	39,363
Product rights and licenses		10		3,323,902		1,099,103		2,224,799
Other⁽¹⁾		8		143,716		55,171		88,545

				3,590,544		1,237,837		2,352,707

IPR&D				148,443		—		148,443

			$	3,738,987	$	1,237,837	$	2,501,150

⁽¹⁾	Other intangibles 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, 2011 and 2010 was $170.7 million and $140.6 million, respectively, and is expected to be approximately $169.8 million for the remainder of 2011 and $330.0 million, $324.3 million, $322.3 million and $295.0 million for the years ended December 31, 2012 through 2015, respectively.

In conjunction with the September 2010 acquisition of Bioniche Pharma, the Company acquired IPR&D assets, which are not currently being amortized. As products in development are approved for sale, amounts will be allocated to product rights and licenses and will be amortized over the estimated useful life. Such IPR&D assets are subject to periodic impairment testing under GAAP guidance. During the six months ended June 30, 2011, approximately $4.3 million was 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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