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INTANGIBLE ASSETS AND GOODWILL (Tables)
 9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of components of intangible assets
The major components of intangible assets as of September 30, 2016 and December 31, 2015 were as follows:
 
 
As of September 30, 2016
 
As of December 31, 2015
 
 
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
 
$
21,959.0

 
$
(6,831.2
)
 
$
15,127.8

 
$
22,082.8

 
$
(5,236.4
)
 
$
16,846.4

Corporate brands
 
1,030.4

 
(138.8
)
 
891.6

 
1,066.1

 
(107.1
)
 
959.0

Product rights/patents
 
4,302.4

 
(2,061.0
)
 
2,241.4

 
4,339.9

 
(1,711.7
)
 
2,628.2

Partner relationships
 
164.6

 
(133.0
)
 
31.6

 
217.6

 
(170.3
)
 
47.3

Technology and other
 
443.1

 
(186.2
)
 
256.9

 
480.3

 
(186.1
)
 
294.2

Total finite-lived intangible assets(1)
 
27,899.5

 
(9,350.2
)
 
18,549.3

 
28,186.7

 
(7,411.6
)
 
20,775.1

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Acquired IPR&D(2)
 
262.6

 
—

 
262.6

 
610.4

 
—

 
610.4

Corporate brand(3)
 
1,697.5

 
—

 
1,697.5

 
1,697.5

 
—

 
1,697.5

 
 
$
29,859.6

 
$
(9,350.2
)
 
$
20,509.4

 
$
30,494.6

 
$
(7,411.6
)
 
$
23,083.0

____________________________________
The Company continues to monitor the recoverability of its finite-lived intangible assets and tests the intangible assets for impairment if indicators of impairment are present.
(1)
In the third quarter of 2016, the Company recognized impairment charges of $142 million, primarily due to (i) an impairment charge of $88 million recognized upon classification of assets associated with a number of small businesses as held for sale (refer to Note 5 for further details) and (ii) an impairment charge of $25 million related to IBSChek™ (U.S. Diversified Products segment), resulting from a decline in sales trends. The remaining impairment charges relate to a number of individually immaterial intangible assets.
In the second quarter of 2016, the Company recognized impairment charges of $215 million, primarily due to $199 million recognized as a result of the intangible assets related to Ruconest® (Branded Rx segment), inclusive of goodwill of $37 million, being classified as assets held for sale commencing June 30, 2016. Refer to Note 5 for further details.
In the first quarter of 2016, the Company recognized impairment charges of $16 million for a number of individually immaterial intangible assets.
In the fourth quarter of 2015, the Company recognized impairment charges of $79 million related to the write-off of intangible assets and $23 million related to the write-off of property, plant and equipment, in connection with the termination (announced in October 2015) of the arrangements with and relating to Philidor (Branded Rx segment). In addition, in the fourth quarter of 2015, the Company recognized an impairment charge of $27 million related to the write-off of ezogabine/retigabine (immediate-release formulation) (U.S. Diversified Products segment) resulting from further analysis of commercialization strategy and projections. GlaxoSmithKline plc (‘‘GSK’’) controls all sales force promotion for ezogabine/retigabine.
In the third quarter of 2015, the Company recognized an impairment charge of $26 million related to Zelapar® (U.S. Diversified Products segment), resulting from declining sales trends.
These impairment charges were recognized in Amortization and impairments of finite-lived intangible assets in the Consolidated statements of (loss) income for the respective periods.
(2)
The Company acquired certain IPR&D assets as part of the Salix Acquisition, as described further in Note 4.
In the second quarter of 2016, the Company wrote off an IPR&D asset of $14 million related to the termination of the development program for Cirle 3-dimensional surgical navigation technology (Bausch + Lomb / International segment), resulting from a feasibility analysis.
In the fourth quarter of 2015, the Company wrote off an IPR&D asset of $28 million related to the Emerade® development program in the U.S. (Bausch + Lomb / International segment) based on analysis of feedback received from the FDA, and such program was terminated in the U.S.
In the third quarter of 2015, the Company wrote off an IPR&D asset of $90 million related to the Rifaximin SSD development program (Branded Rx segment) based on analysis of Phase 2 study data, and the program was subsequently terminated.
In the second quarter of 2015, the Company wrote off an IPR&D asset of $12 million related to the Arestin® Peri-Implantitis development program (Branded Rx segment), resulting from analysis of Phase 3 study data.
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 (loss) income for the respective periods.
(3)
Represents the corporate trademark, related to the acquisition of Bausch & Lomb Holdings Incorporated (‘‘B&L’’) in August 2013, which has an indefinite useful life and is therefore not amortized.
Schedule of estimated aggregate amortization expense for each of the five succeeding years
Estimated aggregate amortization expense, as of September 30, 2016, for each of the five succeeding years ending December 31 is as follows:
 
 
2016
 
2017
 
2018
 
2019
 
2020
Amortization expense(1)
 
$
2,672.8

 
$
2,597.1

 
$
2,468.1

 
$
2,341.4

 
$
2,133.9

____________________________________
(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 in the nine-month period ended September 30, 2016 were as follows:
 
 
Developed Markets
 
Emerging Markets
 
Bausch + Lomb / International
 
Branded Rx
 
U.S. Diversified Products
 
Total
Balance, January 1, 2016
 
$
16,141.3

 
$
2,411.5

 
$
—

 
$
—

 
$
—

 
$
18,552.8

Additions
 
0.7

 
—

 
—

 
—

 
—

 
0.7

Divestitures(1)
 
(36.2
)
 
—

 
—

 
—

 
—

 
(36.2
)
Allocations to assets held for sale(2)
 
(37.1
)
 
—

 
—

 
—

 
—

 
(37.1
)
Foreign exchange and other
 
47.3

 
(12.1
)
 
—

 
—

 
—

 
35.2

Impairment(4)
 
(837.9
)
 
—

 
—

 
—

 
—

 
(837.9
)
Realignment of goodwill(3) 
 
(15,278.1
)
 
(2,399.4
)
 
6,498.2

 
8,026.8

 
3,152.5

 
—

Impairment(4)
 
—

 
—

 
—

 
(211.1
)
 
—

 
(211.1
)
Allocations to assets held for sale(2)
 
—

 
—

 
(29.8
)
 
—

 
—

 
(29.8
)
Foreign exchange and other
 
—

 
—

 
13.9

 
(0.4
)
 
—

 
13.5

Balance, September 30, 2016
 
$
—

 
$
—

 
$
6,482.3

 
$
7,815.3

 
$
3,152.5

 
$
17,450.1

____________________________________
(1)
See Note 5 for additional information regarding the divestiture of a portfolio of neurology medical device products to Stryker Corporation.
(2)
Relates to the reclassification of goodwill to assets held for sale as of September 30, 2016 related to Ruconest® and a number of smaller businesses which the Company expects to divest within one year. Refer to Note 5 for further details.
(3)
Effective in the third quarter of 2016, the Company has three reportable segments: (i) Bausch + Lomb / International, (ii) Branded Rx, and (iii) U.S. Diversified Products. Accordingly, goodwill previously reported in the former Developed Markets and Emerging Markets segments have been reallocated to the new reportable segments using a relative fair value approach. For additional information on the Company's operating and reportable segments, see Note 18.
(4)
During the third quarter of 2016, the Company recognized an aggregate goodwill impairment charge of $1.05 billion, consisting of $838 million of goodwill impairment charge related to its former U.S. reporting unit within the Development Markets segment and $211 million of goodwill impairment charge related to the Salix reporting unit within the Branded Rx reportable segment. Refer to "Realignment of segment structure" below for add