Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the nine months ended September 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 ⁽¹⁾	3,984.9		—			3,984.9
Measurement period adjustments	8.1		—			8.1
Foreign currency translation	260.0		—			260.0
	$	9,284.0	$	349.1		$	9,633.1
Balance at September 30, 2016:
Goodwill	$	9,284.0	$	734.1		$	10,018.1
Accumulated impairment losses	—		(385.0		)	(385.0		)
	$	9,284.0	$	349.1		$	9,633.1

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⁽¹⁾	Includes goodwill related to the acquisition of Meda and the Topicals Business totaling $3.68 billion and $307.3 million, respectively.

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



(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
September 30, 2016
Amortized intangible assets:
Product rights and licenses	15	$	17,867.4	$	3,434.0	$	14,433.4
Patents and technologies	20	116.6		107.3		9.3
Other⁽¹⁾	6	492.5		311.4		181.1
		18,476.5		3,852.7		14,623.8
In-process research and development		989.6		—		989.6
		$	19,466.1	$	3,852.7	$	15,613.4
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.

During the nine months ended September 30, 2016, the Company acquired product rights and licenses from Meda and the Topicals Business totaling approximately $8.06 billion and $454.0 million, respectively. Also, in the period the Company acquired IPR&D totaling approximately $275.0 million from the acquisition of the Topicals Business, and reclassified approximately $20.7 million of previously acquired IPR&D to product rights and licenses.

Amortization expense, which is classified primarily within cost of sales in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015 totaled:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2016		2015		2016		2015
Amortization expense	$	364.3	$	214.3	$	852.9	$	559.8

Inclusive of the impact from the acquisitions of Meda and the Topicals Business, amortization expense over the remainder of 2016 and for years ended December 31, 2017 through 2020 is estimated to be as follows:



(In millions)
2016	$	362
2017	1,307
2018	1,254
2019	1,161
2020	1,041

- 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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