Goodwill and Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

The following table provides a summary of the activity in goodwill by segment for the nine month period ended September 30, 2017 (in thousands):



	Consumer Health		Prescription Pharmaceuticals		Total
Balances at December 31, 2016	$	16,717	$	267,576	$	284,293
Currency translation adjustments	—		629		629
Acquisitions	—		—		—
Impairments	—		—		—
Dispositions	—		—		—
Balances at September 30, 2017	$	16,717	$	268,205	$	284,922

The following table sets forth the major categories of the Company’s intangible assets as of September 30, 2017 and December 31, 2016, and the weighted average remaining amortization period as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands):



	Gross Amount (1)		Accumulated Amortization			Reclass-ifications			Gross Impairment			Net Balance		Wtd Avg Remaining Amortization Period (years)
September 30, 2017
Product licensing rights	$	744,812	$	(222,221	)	$	—		$	(14,557	)	$	508,034	9.8
IPR&D	173,757		—			—			(3,415		)	170,342		N/A - Indefinite lived
Trademarks	16,000		(5,144		)	—			—			10,856		18.0
Customer relationships	4,225		(1,993		)	—			—			2,232		8.6
Other intangibles	11,235		(5,614		)	—			—			5,621		5.7
	$	950,029	$	(234,972	)	$	—		$	(17,972	)	$	697,085
December 31, 2016
Product licensing rights	$	790,143	$	(182,901	)	$	9,400		$	(52,637	)	$	564,005	10.5
IPR&D	187,007		—			(9,400		)	(3,850		)	173,757		N/A - Indefinite lived
Trademarks	16,000		(4,244		)	—			—			11,756		18.0
Customer relationships	6,290		(3,863		)	—			—			2,427		9.3
Other intangibles	11,235		(4,326		)	—			—			6,909		6.0
	$	1,010,675	$	(195,334	)	$	—		$	(56,487	)	$	758,854

(1) Differences in the Gross Amounts between periods are due to either impairment of assets or the write down of fully amortized assets.

The Company recorded amortization expense of $15.3 million and $16.5 million during the three month periods ended September 30, 2017 and 2016, respectively, and $46.3 million and $49.4 million during the nine month periods ended September 30, 2017 and 2016, respectively.

Impairment of product licensing rights is stated at gross carrying cost of $14.6 million less accumulated amortization of $2.3 million as of the impairment date. Accordingly, the net impairment expense recognized in product licensing rights was $12.3 million for the nine months ended September 30, 2017. Of the $12.3 million of impairment, $1.6 million was recognized in R&D expense due to changes in market conditions expected upon launch of an asset acquired through the Hi-Tech acquisition and $10.7 million of impairment was related to competition and changing market dynamics of two currently marketed products acquired through the Hi-Tech and VersaPharm acquisitions. The Company also recognized impairment of IPR&D due to changes in the expected market conditions upon launch of one asset acquired in the VersaPharm acquisition of $3.2 million and a $0.2 million milestone payment related to the abandonment of the product (which was recognized in R&D expense) in the nine month period ended September 30, 2017.

- 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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