GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 10. GOODWILL AND OTHER INTANGIBLES

Goodwill

The following table presents information about our goodwill at March 31, 2023 and December 31, 2022 (in thousands):


	Branded Pharmaceuticals		Sterile Injectables		Generic Pharmaceuticals		International Pharmaceuticals		Total





Goodwill as of December 31, 2022	$	828,818	$	523,193	$	—	$	—	$	1,352,011



Goodwill as of March 31, 2023	$	828,818	$	523,193	$	—	$	—	$	1,352,011

The carrying amounts of goodwill at March 31, 2023 and December 31, 2022 are net of the following accumulated impairments (in thousands):


	Branded Pharmaceuticals		Sterile Injectables		Generic Pharmaceuticals		International Pharmaceuticals		Total
Accumulated impairment losses as of December 31, 2022	$	855,810	$	2,208,000	$	3,142,657	$	513,211	$	6,719,678
Accumulated impairment losses as of March 31, 2023	$	855,810	$	2,208,000	$	3,142,657	$	514,602	$	6,721,069

Other Intangible Assets

Changes in the amounts of other intangible assets for the three months ended March 31, 2023 are set forth in the table below (in thousands).


Cost basis:	Balance as of December 31, 2022		Acquisitions		Other (1)		Effect of Currency Translation		Balance as of March 31, 2023




Licenses (weighted average life of 14 years)	$	442,107	$	—	$	(10,000)	$	—	$	432,107
Tradenames	6,409		—		—		—		6,409
Developed technology (weighted average life of 12 years)	5,920,021		—		—		652		5,920,673

Total other intangibles (weighted average life of 12 years)	$	6,368,537	$	—	$	(10,000)	$	652	$	6,359,189

Accumulated amortization:	Balance as of December 31, 2022		Amortization		Other (1)		Effect of Currency Translation		Balance as of March 31, 2023

Licenses	$	(424,508)	$	(1,144)	$	10,000	$	—	$	(415,652)
Tradenames	(6,409)		—		—		—		(6,409)
Developed technology	(4,204,685)		(64,112)		—		(522)		(4,269,319)
Total other intangibles	$	(4,635,602)	$	(65,256)	$	10,000	$	(522)	$	(4,691,380)
Net other intangibles	$	1,732,935							$	1,667,809

__________

(1)Other adjustments relate to the removal of certain fully amortized intangible assets.

Amortization expense for the three months ended March 31, 2023 and 2022 totaled $65.3 million and $90.2 million, respectively. Amortization expense is included in Cost of revenues in the Condensed Consolidated Statements of Operations.

Impairments

Goodwill and, if applicable, indefinite-lived intangible assets are tested for impairment annually, as of October 1, and when events or changes in circumstances indicate that the asset might be impaired.

As part of our goodwill and intangible asset impairment assessments, we estimate the fair values of our reporting units and our intangible assets using an income approach that utilizes a discounted cash flow model or, where appropriate, a market approach.

The discounted cash flow models reflect our estimates of future cash flows and other factors including estimates of: (i) future operating performance, including future sales, long-term growth rates, gross margins, operating expenses, discount rates and the probability of achieving the estimated cash flows, and (ii) future economic conditions. These assumptions are based on significant inputs and judgments not observable in the market, and thus represent Level 3 measurements within the fair value hierarchy. The discount rates used in the determination of fair value reflect our judgments regarding the risks and uncertainties inherent in the estimated future cash flows and may differ over time depending on the risk profile of the particular assets and other market factors. We believe the discount rates and other inputs and assumptions are consistent with those a market participant would use. Any impairment charges resulting from annual or interim goodwill and intangible asset impairment assessments are recorded to Asset impairment charges in our Condensed Consolidated Statements of Operations.

During the three months ended March 31, 2023, we did not record any impairment charges associated with intangible assets or goodwill. During the three months ended March 31, 2022, we recorded impairment charges of $20.0 million associated with other intangible assets and we did not record any goodwill impairment charges. These pre-tax non-cash asset impairment charges related primarily to certain developed technology intangible assets that were tested for impairment following changes in market conditions and certain other factors impacting recoverability.