6. Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

During the three months ended September 30, 2015, the Company recorded a measurement period adjustment related to the recognition of a product return liability due to the seller which increased goodwill by $2.8 million. This measurement period adjustment is recorded as a current period adjustment in accordance with ASU 2015-16.

Goodwill consists of the following (in thousands):

Balance at December 31, 2013	$	42,497
Goodwill acquired - Treximet		4,309
Goodwill impairment - PML (See note 5)		(916)
Measurement period adjustments		(990)
Balance at December 31, 2014		44,900
Goodwill acquired - Zohydro		180
Measurement period adjustments - Zohydro (See note 13)		514
Measurement period adjustments - Treximet (See note 1)		2,836
Balance at September 30, 2015	$	48,430

Intangible assets

Intangible assets consist of the following (dollars in thousands):

			As of September 30, 2015
	Weighted		Gross Carrying		Accumulated		Net Carrying
	Average Life		Amount		Amortization		Amount
Unamortized intangible assets:
Trademark rights	Indefinite	$	400	$	-	$	400
In-process research and development	Indefinite		79,900		-		79,900
Total unamortized intangible assets			80,300		-		80,300
Amortized intangible assets:
Patents	11.0 years		500		(390)		110
Brand	8.0 years		3,887		(2,672)		1,215
Product licenses	11.0 years		17,581		(5,331)		12,250
Non-compete and supplier contracts	4.0 years		7,094		(6,452)		642
Acquired developed technologies	4.3 years		360,226		(96,595)		263,631
Total amortized intangible assets			389,288		(111,440)		277,848
Total intangible assets		$	469,588	$	(111,440)	$	358,148

			As of December 31, 2014
	Weighted		Gross Carrying		Accumulated		Net Carrying
	Average Life		Amount		Amortization		Amount
Unamortized intangible assets:
Trademark rights	Indefinite	$	400	$	-	$	400
In-process research and development	Indefinite		48,300		-		48,300
Total unamortized intangible assets			48,700		-		48,700
Amortized intangible assets:
Patents	11.0 years		500		(355)		145
Brand	8.0 years		3,887		(2,308)		1,579
Product licenses	11.0 years		17,581		(4,058)		13,523
Non-compete and supplier contracts	5.3 years		5,194		(4,342)		852
Acquired developed technologies	4.4 years		269,826		(34,136)		235,690
Total amortized intangible assets			296,988		(45,199)		251,789
Total intangible assets		$	345,688	$	(45,199)	$	300,489

Intangible Assets Estimated Amortization Expenses

Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows (in thousands):

2015 (October - December)	$	24,613
2016		95,879
2017		94,211
2018		28,582
2019		17,778
2020		4,245
Thereafter		12,540
Total	$	277,848