Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the six months ended June 30, 2016 are as follows:



(In millions)	Generics Segment		Specialty Segment			Total
Balance at December 31, 2015:
Goodwill	$	5,031.0	$	734.1		$	5,765.1
Accumulated impairment losses	—		(385.0		)	(385.0		)
	5,031.0		349.1			5,380.1
Acquisitions	307.3		—			307.3
Measurement period adjustments	8.1		—			8.1
Foreign currency translation	134.7		—			134.7
	$	5,481.1	$	349.1		$	5,830.2
Balance at June 30, 2016:
Goodwill	$	5,481.1	$	734.1		$	6,215.2
Accumulated impairment losses	—		(385.0		)	(385.0		)
	$	5,481.1	$	349.1		$	5,830.2

Intangible assets consist of the following components at June 30, 2016 and December 31, 2015:



(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
June 30, 2016
Amortized intangible assets:
Product rights and licenses	11	$	9,629.0	$	3,124.9	$	6,504.1
Patents and technologies	20	116.6		106.1		10.5
Other⁽¹⁾	6	487.3		270.3		217.0
		10,232.9		3,501.3		6,731.6
In-process research and development		984.9		—		984.9
		$	11,217.8	$	3,501.3	$	7,716.5
December 31, 2015
Amortized intangible assets:
Product rights and licenses	11	$	8,848.6	$	2,652.7	$	6,195.9
Patents and technologies	20	116.6		103.8		12.8
Other ⁽¹⁾	6	465.3		189.8		275.5
		9,430.5		2,946.3		6,484.2
In-process research and development		737.7		—		737.7
		$	10,168.2	$	2,946.3	$	7,221.9

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⁽¹⁾	Other intangible assets consist principally of customer lists, contractual rights and other contracts.

Amortization expense, which is classified primarily within cost of sales in the Condensed Consolidated Statements of Operations, for the three and six months ended June 30, 2016 was $246.3 million and $488.6 million, respectively, and $215.0 million and $345.5 million for the three and six months ended June 30, 2015, respectively. Amortization expense is expected to be approximately $512 million for the remainder of 2016 and $872 million, $820 million, $734 million and $631 million for the years ended December 31, 2017 through 2020, respectively, which includes the impact from the acquisition of the Topicals Business and excludes the impact of the Meda Transaction.

During the six months ended June 30, 2016, approximately $20.7 million was reclassified from acquired IPR&D to product rights and licenses.

- 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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