H. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Our goodwill balance consisted of the following (in thousands):


Balance at January 1, 2014	$	—
Goodwill acquired through Lumara Health acquisition		205,824
Balance as of December 31, 2014		205,824
Goodwill acquired through CBR acquisition		441,075
Measurement period adjustments related to Lumara Health acquisition		(7,711)
Balance as of December 31, 2015	$	639,188

The measurement period adjustments related to the Lumara Health acquisition were comprised primarily of a $7.2 million reduction associated with adjustments to our Makena revenue reserves and a $5.4 million reduction related to net deferred tax liabilities, partially offset by a $4.5 million increase associated with the final settlement of net working capital with the former stockholders of Lumara Health. These current period adjustments have been recorded in accordance with the guidance in ASU 2015-16, which we early adopted in 2015. As of December 31, 2015, we had no accumulated impairment losses related to goodwill. See Note C, “Business Combinations,” for additional information.

Intangible Assets

As of December 31, 2015 and 2014, our identifiable intangible assets consisted of the following (in thousands):


		December 31, 2015					December 31, 2014
			Accumulated						Accumulated
	Cost		Amortization		Net		Cost		Amortization		Net
Amortizable intangible assets:
Makena Base Technology	$	797,100	$	56,540	$	740,560	$	797,100	$	4,834	$	792,266
CBR customer relationships		297,000		1,061		295,939		—		—		—
Favorable lease		358		63		295		—		—		—
MuGard Rights		16,893		1,016		15,877		16,893		351		16,542
		1,111,351		58,680		1,052,671		813,993		5,185		808,808
Indefinite-lived intangible assets:
Makena IPR&D		79,100		—		79,100		79,100		—		79,100
CBR trade names and trademarks		65,000		—		65,000		—		—		—
Total intangible assets	$	1,255,451	$	58,680	$	1,196,771	$	893,093	$	5,185	$	887,908

As of December 31, 2015, the weighted average remaining amortization period for our finite-lived intangible assets was 8.9 years.

The Makena Base Technology and IPR&D intangible assets were acquired in November 2014 in connection with our acquisition of Lumara Health. Amortization of the Makena Base Technology asset is being recognized using an economic consumption model over twenty years, which we believe is an appropriate amortization period due to the estimated economic lives of the product rights and related intangibles.

The CBR intangible assets (the CBR customer relationships, favorable lease and trade names and trademarks) were acquired in August 2015 in connection with our acquisition of CBR. Amortization of the CBR customer relationships is being recognized using an estimated useful life of twenty years, which we believe is an appropriate amortization period due to the estimated economic lives of the CBR intangible assets. The favorable lease is being amortized on a straight-line basis over the remaining term of the lease.

The MuGard Rights were acquired from Abeona in June 2013. Amortization of the MuGard Rights is being recognized using an economic consumption model over ten years, which represents our best estimate of the period over which we expect the majority of the asset’s cash flows to be derived. We believe this is the best approximation of the period over which we will derive the majority of value of the MuGard Rights. We have assessed the MuGard Rights for potential impairment at December 31, 2015 and concluded that the projected undiscounted cash flows continued to exceed the carrying value of this intangible asset. However, if we are not able to expand reimbursement and coverage for MuGard as planned and therefore revenues do not increase as projected, this intangible may be subject to future potential impairment.

See Note C, “Business Combinations,” for additional information on our intangible assets.

Total amortization expense for 2015, 2014 and 2013 was $53.5 million, $5.1 million, and less than $0.1 million, respectively. The increase in amortization expense is due to the amortization of the Makena and CBR related intangible assets. Amortization expense for Makena and MuGard is recorded in cost of product sales in our consolidated statements of operations. Amortization expense for CBR related intangibles is recorded in selling, general and administrative expenses in our consolidated statements of operations. We expect amortization expense related to our finite-lived intangible assets to be as follows (in thousands):


	Estimated
	Amortization
Period	Expense
Year Ending December 31, 2016	$	77,704
Year Ending December 31, 2017		92,816
Year Ending December 31, 2018		100,251
Year Ending December 31, 2019		71,467
Year Ending December 31, 2020		48,890
Thereafter		661,543
Total	$	1,052,671