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INTANGIBLE ASSETS AND GOODWILL (Tables)
 12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of components of intangible assets
The major components of intangible assets as of December 31, 2014 and 2013 were as follows:
 
Weighted-
Average
Useful
Lives
(Years)
 
2014
 
2013
 
Gross
Carrying
Amount
 
Accumulated
Amortization,
Including
Impairments
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization,
Including
Impairments
 
Net
Carrying
Amount
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Product brands
9
 
$
10,320.2

 
$
(3,579.8
)
 
$
6,740.4

 
$
10,554.2

 
$
(2,729.1
)
 
$
7,825.1

Corporate brands
14
 
364.2

 
(65.2
)
 
299.0

 
365.6

 
(44.4
)
 
321.2

Product rights
7
 
3,225.9

 
(1,263.8
)
 
1,962.1

 
3,021.0

 
(876.9
)
 
2,144.1

Partner relationships
4
 
223.1

 
(107.5
)
 
115.6

 
194.0

 
(83.2
)
 
110.8

Out-licensed technology and other
5
 
275.5

 
(124.3
)
 
151.2

 
264.0

 
(93.8
)
 
170.2

Total finite-lived intangible assets(1)
7
 
14,408.9

 
(5,140.6
)
 
9,268.3

 
14,398.8

 
(3,827.4
)
 
10,571.4

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired IPR&D(2)
NA
 
290.1

 
—

 
290.1

 
579.3

 
—

 
579.3

Corporate brand(3)
NA
 
1,697.5

 
—

 
1,697.5

 
1,697.5

 
—

 
1,697.5

 
 
 
$
16,396.5

 
$
(5,140.6
)
 
$
11,255.9

 
$
16,675.6

 
$
(3,827.4
)
 
$
12,848.2

____________________________________
(1)
In the fourth quarter of 2014, the Company recognized a write-off of $55.2 million related to the Kinerase® product within the Developed Market segment. The write-off was driven by the discontinuation of the product.
In the third quarter of 2014, the Company recognized a write-off of $32.4 million related to Grifulvin®, an anti-fungal product within the Developed Markets segment. The write-off was driven by withdrawal of the supplemental Abbreviated New Drug Application, which resulted from assessment of extended timelines and increased costs associated with a change in the supplier and the manufacturing process, based on feedback received from the FDA.
In the third quarter of 2013, the Company recognized an impairment charge of $551.6 million related to ezogabine/retigabine (immediate-release formulation), which is included within the Developed Markets segment. This product is co-developed and marketed under a collaboration agreement with GSK. For further information regarding this asset impairment charge, see note 6 titled “FAIR VALUE MEASUREMENTS”.
In the first quarter of 2013, the Company recognized a write-off of $22.2 million related to Opana®, a pain relief medication approved in Canada (included in the Company’s Developed Markets segment), due to production issues arising in the first quarter of 2013. These production issues resulted in higher spending projections and delayed commercialization timelines which, in turn, triggered the Company’s decision to suspend its launch plans. The Company does not believe this program has value to a market participant.
These impairment charges were recognized in Amortization and impairments of finite-lived intangible assets in the consolidated statements of income (loss).
(2)
In the fourth quarter of 2013, the Company wrote-off an IPR&D asset of $14.4 million related to the termination of the Mapracorat development program (included in both the Emerging Markets and Developed Markets segments), acquired by the Company as part of B&L Acquisition, resulting from analysis of Phase 3 study results.
In the third quarter of 2013, the Company wrote off an IPR&D asset of $93.8 million relating to a modified-release formulation of ezogabine/retigabine. For further information regarding this write-off, see note 6 titled “FAIR VALUE MEASUREMENTS”.
In addition, in the third quarter of 2013, the Company wrote-off IPR&D assets of $27.3 million, in the aggregate, due to the write-off of IPR&D assets mainly related to the termination of the A007 (Lacrisert®) development program (Developed Markets segment) in the third quarter of 2013. The Company does not believe these programs have value to a market participant.
The write offs of the IPR&D assets were recognized in In-process research and development impairments and other charges in the consolidated statements of income (loss).
(3)
Represents the B&L corporate trademark, which has an indefinite useful life and is not amortizable. See note 3 “BUSINESS COMBINATIONS” for further information.
Schedule of estimated aggregate amortization expense for each of the five succeeding years
Estimated aggregate amortization expense for each of the five succeeding years ending December 31 is as follows:
 
 
2015
 
2016
 
2017
 
2018
 
2019
Amortization expense(1)
 
$
1,376.1

 
$
1,280.1

 
$
1,216.3

 
$
1,093.6

 
$
949.8

____________________________________
(1)
Estimated amortization expense shown in the table above does not include potential future impairments of finite-lived intangible assets, if any.
Schedule of changes in the carrying amount of goodwill
The changes in the carrying amount of goodwill for years ended December 31, 2014 and 2013 were as follows:
 
 
Developed
Markets
 
Emerging
Markets
 
Total
Balance, December 31, 2012
 
$
3,993.0

 
$
1,148.4

 
$
5,141.4

Additions(1)
 
3,395.7

 
1,199.5

 
4,595.2

Adjustments(2)
 
28.4

 
(0.3
)
 
28.1

Foreign exchange and other
 
11.6

 
(24.2
)
 
(12.6
)
Balance, December 31, 2013
 
7,428.7

 
2,323.4

 
9,752.1

Additions(3)
 
317.4

 
78.9

 
396.3

Adjustments(4)
 
(19.6
)
 
(4.3
)
 
(23.9
)
Divestitures(5)
 
(428.9
)
 
—

 
(428.9
)
Foreign exchange and other
 
(182.6
)
 
(166.6
)
 
(349.2
)
Balance, December 31, 2014
 
$
7,115.0

 
$
2,231.4

 
$
9,346.4

____________________________________
(1)
Primarily relates to the B&L, Obagi and Natur Produkt acquisitions.
(2)
Primarily reflects the impact of measurement period adjustments related to the Medicis acquisition.
(3)
Primarily relates to the PreCision and Solta Medical acquisitions.
(4)
Primarily reflects the impact of measurement period adjustments related to the B&L Acquisition.
(5)
See note 4, titled “DIVESTITURES” for additional information.