Goodwill And Other Intangibles

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9. GOODWILL AND OTHER INTANGIBLES

Goodwill

Changes in the carrying amount of our goodwill for the three months ended March 31, 2014 were as follows:



	Carrying Amount
	U.S. Branded Pharmaceuticals		U.S. Generic Pharmaceuticals		Devices			International Pharmaceuticals		Total Consolidated
Balance as of December 31, 2013:
Goodwill	$	290,793	$	275,201	$	1,795,366		$	—	$	2,361,360
Accumulated impairment losses	—		—		(988,528		)	—		(988,528		)
	$	290,793	$	275,201	$	806,838		$	—	$	1,372,832
Goodwill acquired during the period	—		11,611		—			2,134,565		2,146,176
Effect of currency translation	—		—		346			3,297		3,643
Goodwill impairment charges	—		—		—			—		—
Balance as of March 31, 2014:
Goodwill	290,793		286,812		1,795,712			2,137,862		4,511,179
Accumulated impairment losses	—		—		(988,528		)	—		(988,528		)
	$	290,793	$	286,812	$	807,184		$	2,137,862	$	3,522,651

Other Intangible Assets

The following is a summary of other intangibles held by the Company at March 31, 2014 and December 31, 2013 (in thousands):



	March 31, 2014			December 31, 2013
Indefinite-lived intangibles:
In-process research and development	$	225,600		$	73,400
Total indefinite-lived intangibles	$	225,600		$	73,400
Definite-lived intangibles:
Licenses (weighted average life of 9 years)	$	627,127		$	587,127
Less accumulated amortization	(376,938		)	(357,439		)
Licenses, net	$	250,189		$	229,688
Customer relationships (weighted average life of 16 years)	158,433			158,258
Less accumulated amortization	(28,121		)	(25,574		)
Customer relationships, net	$	130,312		$	132,684
Tradenames (weighted average life of 24 years)	77,000			77,000
Less accumulated amortization	(10,841		)	(9,934		)
Tradenames, net	$	66,159		$	67,066
Developed technology (weighted average life of 15 years)	2,376,694			1,720,428
Less accumulated amortization	(386,278		)	(350,340		)
Developed technology, net	$	1,990,416		$	1,370,088
Total definite-lived intangibles, net (weighted average life of 14 years)	$	2,437,076		$	1,799,526
Other intangibles, net	$	2,662,676		$	1,872,926

As of March 31, 2014, the weighted average amortization period for our definite-lived intangible assets in total was approximately 14 years.

Amortization expense for the three months ended March 31, 2014 and 2013 totaled $58.9 million and $47.4 million, respectively. Estimated amortization of intangibles for the five years subsequent to December 31, 2013 is as follows (in thousands):



2014	$	197,687
2015	$	236,831
2016	$	212,306
2017	$	186,773
2018	$	186,257

Changes in the gross carrying amount of our other intangible assets for the three months ended March 31, 2014 were as follows (in thousands):



	Gross Carrying Amount
December 31, 2013	$	2,616,213
Aveed™ approval milestone	5,000
Paladin acquisition	676,000
Boca acquisition	165,900
Effect of currency translation	1,741
March 31, 2014	$	3,464,854

The December 31, 2013 amounts above related to both the gross amount and related accumulated amortization for license intangible assets within the Other Intangible Assets summary and the total other intangible gross amount within the Gross Carrying Amount roll-forward have been revised from amounts previously disclosed within the December 31, 2013 Form 10-K. The purpose of this revision was to remove approximately $47.1 million from both the gross amount and corresponding accumulated amortization for intangible assets that were fully amortized as of December 31, 2013. These adjustments had no impact on the reported net other intangible assets and the revision did not impact the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive (Loss) Income or Condensed Consolidated Statements of Cash Flows as of and for the year ended December 31, 2013.

- 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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