H. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Our $639.5 million goodwill balance consisted $198.1 million of goodwill acquired through the November 2014 Lumara Health acquisition and $441.4 million acquired through the August 2015 CBR acquisition. During the three months ended March 31, 2016, the CBR goodwill increased by $0.3 million related to net tax adjustments. These measurement period adjustments have been reflected as current period adjustments in accordance with ASU 2015-16, discussed below in Note S, “Recently Issued and Proposed Accounting Pronouncements.” As of March 31, 2016, we had no accumulated impairment losses related to goodwill.

Intangible Assets

As of March 31, 2016 and December 31, 2015, our identifiable intangible assets consisted of the following (in thousands):


		March 31, 2016					December 31, 2015
			Accumulated						Accumulated
	Cost		Amortization		Net		Cost		Amortization		Net
Amortizable intangible assets:
Makena base technology	$	797,100	$	69,904	$	727,196	$	797,100	$	56,540	$	740,560
CBR customer relationships		297,000		4,193		292,807		297,000		1,061		295,939
Favorable lease		358		106		252		358		63		295
MuGard Rights		16,893		1,124		15,769		16,893		1,016		15,877
		1,111,351		75,327		1,036,024		1,111,351		58,680		1,052,671
Indefinite-lived intangible assets:
Makena IPR&D		79,100		—		79,100		79,100		—		79,100
CBR trade names and trademarks		65,000		—		65,000		65,000		—		65,000
Total intangible assets	$	1,255,451	$	75,327	$	1,180,124	$	1,255,451	$	58,680	$	1,196,771

As of March 31, 2016, the weighted average remaining amortization period for our finite-lived intangible assets was approximately 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 have assessed the MuGard Rights for potential impairment as of 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 asset may be subject to future impairment.

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

Total amortization expense for the three months ended March 31, 2016 and 2015, was $16.6 million and $11.5 million, respectively. Amortization expense for Makena and MuGard is recorded in cost of product sales in our condensed consolidated statements of operations. Amortization expense for the CBR related intangibles is recorded in selling, general and administrative expenses in our condensed 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
Remainder of Year Ending December 31, 2016	$	63,825
Year Ending December 31, 2017		92,532
Year Ending December 31, 2018		99,941
Year Ending December 31, 2019		71,253
Year Ending December 31, 2020		48,752
Thereafter		659,721
Total	$	1,036,024