Goodwill and Intangible Assets

6 Months Ended

Jun. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

8. Intangible Assets

The gross carrying amount and accumulated amortization of intangible assets were comprised of the following at the end of each period:

	June 26, 2020				December 27, 2019
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable:
Completed technology	$	10,394.6	$	4,208.3	$	10,456.9	$	3,822.8
License agreements	120.1		76.1		120.1		74.1
Trademarks	77.7		21.8		77.7		20.1
Total	$	10,592.4	$	4,306.2	$	10,654.7	$	3,917.0
Non-Amortizable:
Trademarks	$	35.0			$	35.0
In-process research and development	245.3				245.3
Total	$	280.3			$	280.3

Ofirmev^®

During the three months ended June 26, 2020, due to decreased demand as a result of the deprioritization of non-critical medical treatment in the face of COVID-19 pandemic, along with increased generic competition anticipated in the marketplace post the product's loss of exclusivity in December 2020, the Company identified a triggering event with respect to the Ofirmev intangible asset within the Specialty Brands segment and assessed the recoverability of the definite-lived asset. Additionally, the Company evaluated whether these events warranted a revision to the remaining period of amortization that previously extended to March 2022. As a result of this analysis, the Company revised the useful life to end December 25, 2020, commensurate with the final period of market exclusivity. After this change in estimate of the asset's useful life, the Company determined that the undiscounted cash flows related to the Ofirmev intangible asset were less than its net book value, which required the Company to record an impairment charge for the difference between the fair value of the Ofirmev intangible asset and its net book value.

The Company determined the fair value of the Ofirmev intangible asset using the income approach, a level three measurement technique. For purposes of determining fair value, the Company made various assumptions regarding estimated future cash flows, the discount rate and other factors in determining the fair value of the intangible asset. The Company's projections in relation to the Ofirmev intangible asset included long-term net sales and operating income at lower than historical levels. These changes in assumptions resulted in a fair value of the Ofirmev intangible asset that was less than its net book value. Therefore, the Company recorded an impairment charge of $63.5 million. The remaining intangible asset value of $91.5 million will be amortized prospectively over the revised remaining useful life.

Intangible asset amortization expense

Intangible asset amortization expense was as follows:

	Three Months Ended				Six Months Ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Amortization expense	$	191.6	$	216.6	$	389.2	$	439.4

The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows:

Remainder of Fiscal 2020	$	382.0
Fiscal 2021	581.1
Fiscal 2022	581.1
Fiscal 2023	581.1
Fiscal 2024	581.1