Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill [Text Block]

INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The following table summarizes the carrying amount of our intangible assets (in thousands):



	June 30, 2014		December 31, 2013
Finite-lived intangible assets	$	10,926,729	$	11,325,751
Indefinite-lived intangible assets	581,590		574,355
Total intangible assets	$	11,508,319	$	11,900,106

Finite-Lived Intangible Assets

The following table summarizes our finite-lived intangible assets (in thousands):



	June 30, 2014				December 31, 2013
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Intangible asset - sofosbuvir	$	10,720,000	$	407,826	$	10,720,000	$	58,261
Intangible asset - Ranexa	688,400		226,081		688,400		190,849
Other	305,795		153,559		305,795		139,334
Total	$	11,714,195	$	787,466	$	11,714,195	$	388,444

Upon U.S. Food and Drug Administration (FDA) approval and commercial launch of Sovaldi in December 2013, we reclassified the in-process R&D related to sofosbuvir to finite-lived intangible assets. Amortization expense related to finite-lived intangible assets included primarily in cost of goods sold in our Condensed Consolidated Statements of Income totaled $199.5 million and $399.0 million for the three and six months ended June 30, 2014 and $21.5 million and $43.1 million for the three and six months ended June 30, 2013. The weighted-average amortization period for all finite-lived intangible assets is approximately 15 years. As of June 30, 2014, the estimated future amortization expense associated with our intangible assets for the remaining six months of 2014 and each of the five succeeding fiscal years is as follows (in thousands):



Fiscal Year	Amount
2014 (remaining six months)	$	399,022
2015	803,496
2016	811,428
2017	815,871
2018	827,980
2019	792,823
Total	$	4,450,620

Indefinite-Lived Intangible Assets

The following table summarizes our indefinite-lived intangible assets (in thousands):



	June 30, 2014		December 31, 2013
Indefinite-lived intangible asset - momelotinib (formerly CYT387)	$	308,155	$	362,700
Indefinite-lived intangible assets - other	266,200		266,200
	574,355		628,900
Foreign currency translation adjustment	7,235		(54,545		)
Total	$	581,590	$	574,355

Goodwill

The following table summarizes the changes in the carrying amount of goodwill (in thousands):



Balance at December 31, 2013	$	1,169,023
Foreign currency translation adjustment	2,538
Balance at June 30, 2014	$	1,171,561

- 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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