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Goodwill and Other Intangible Assets, Net
 9 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net

Intangible assets consist primarily of Goodwill, which is carried at its initial value, subject to evaluation for impairment, In-Process Research and Development (“IPR&D”), which is accounted for as an indefinite-lived intangible asset, subject to impairment testing until completion or abandonment of the project, and product licensing rights, trademarks and other such rights, which are capitalized and amortized on a straight-line basis over their useful lives, ranging from one to thirty years.

As of September 30, 2019 and 2018, accumulated amortization of intangible assets was $243.2 million and $257.2 million, respectively. The Company recorded amortization expense of $9.4 million and $13.6 million during the three month periods ended September 30, 2019 and 2018, respectively and $30.4 million and $40.0 million during the nine month periods ended September 30, 2019 and 2018, respectively. The Company regularly assesses its amortizable intangible assets for impairment based on several factors, including estimated fair value and anticipated cash flows.

IPR&D intangible assets represent the value assigned to acquired R&D projects that principally represent rights to develop and sell a product that the Company has acquired which have not yet been completed or approved. These assets are subject to impairment testing until completion or abandonment of each project. Impairment testing requires significant estimates and assumptions involving the determination of estimated net cash flows for each year for each project or product (including net revenue, cost of sales, selling and marketing costs and other costs which may be allocated), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, and competitive trends impacting the asset and each cash flow stream as well as other factors. The major risks and uncertainties associated with the timely and successful completion of the IPR&D projects include legal risk, market risk and regulatory risk. If applicable, upon abandonment of the IPR&D product, the assets are fully impaired.

During the three month period ended September 30, 2019, no IPR&D projects were impaired, while during the three month period ended September 30, 2018, eight IPR&D projects were impaired primarily due to the anticipated market conditions and competition upon launch, resulting in impairment expenses of $20.6 million. Additionally, during the three
month period ended September 30, 2019, no product licensing right was impaired, compared to impairments of $9.0 million related to six product licensing rights during the comparative prior year period.

During the nine month period ended September 30, 2019, no IPR&D projects were impaired, while during the nine month period ended September 30, 2018, sixteen IPR&D projects were impaired primarily due to anticipated market conditions upon launch, resulting in impairment expenses of $100.1 million. Additionally, during the nine month period ended September 30, 2019, two product licensing rights were impaired due to competition resulting in impairment expenses of $10.7 million, compared to impairments of $12.9 million expenses related to ten product licensing rights due to competition during the comparative prior year period.

Goodwill is tested for impairment annually or more frequently if changes in circumstances or the occurrence of events suggest that impairment may exist. In its annual goodwill impairment analysis, the Company uses widely accepted valuation techniques to determine the fair value of its reporting units. The Company’s valuation is primarily based on qualitative and quantitative assessments regarding the fair value of the reporting unit relative to its carrying value. The Company also models the fair value of the reporting unit based on projected earnings and cash flows of the reporting unit. As a result of the Company's decision to explore strategic alternatives to exit the India manufacturing facility, the Company performed impairment testing and recorded goodwill impairment of $16.0 million during the three month period ended March 31, 2019.

The following table provides a summary of the activity in goodwill by segment for the nine month period ended September 30, 2019 (in thousands):
 
Consumer
Health
 
Prescription
Pharmaceuticals
 
Total
Balances at December 31, 2018
$
16,717

 
$
267,162

 
$
283,879

Currency translation adjustments
—

 
(1
)
 
(1
)
Acquisitions
—

 
—

 
—

Impairments
—

 
(15,955
)
 
(15,955
)
Dispositions
—

 
—

 
—

Balances at September 30, 2019
$
16,717

 
$
251,206

 
$
267,923



The following table sets forth the major categories of the Company’s intangible assets as of September 30, 2019 and December 31, 2018, and the weighted average remaining amortization period as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands):
 
Gross
Amount (2)
 
Accumulated
Amortization
 
Reclassifications
 
Impairment (1)
 
Net
Balance
 
Wtd Avg Remaining
Amortization Period
(years)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Product licensing rights
$
472,041

 
$
(227,678
)
 
$
—

 
$
(15,550
)
 
$
228,813

 
8.6
IPR&D
4,400

 
—

 
—

 
—

 
4,400

 
N/A - Indefinite lived
Trademarks
16,000

 
(6,999
)
 
—

 
—

 
9,001

 
17.2
Customer relationships
4,225

 
(2,513
)
 
—

 
—

 
1,712

 
6.6
Other intangibles
6,000

 
(6,000
)
 
—

 
—

 
—

 
0.0
 
502,666

 
$
(243,190
)
 
$
—

 
$
(15,550
)
 
$
243,926

 
 
December 31, 2018
 

 
 

 
 
 
 
 
 

 
 
Product licensing rights
$
597,960

 
$
(203,323
)
 
$
5,300

 
$
(131,306
)
 
$
268,631

 
9.2
IPR&D
149,161

 
—

 
(5,300
)
 
(139,461
)
 
4,400

 
N/A - Indefinite lived
Trademarks
16,000

 
(6,304
)
 
—

 
—

 
9,696

 
17.5
Customer relationships
4,225

 
(2,318
)
 
—

 
—

 
1,907

 
7.3
Other intangibles
11,235

 
(5,658
)
 
—

 
(5,235
)
 
342

 
0.3
 
$
778,581

 
$
(217,603
)
 
$
—

 
$
(276,002
)
 
$
284,976

 
 

(1) Impairment of product licensing rights is stated at gross carrying cost of $15.6 million less accumulated amortization of $4.9 million as of the impairment date. Accordingly, the total net impairment expense was $10.7 million, for the nine month period ended September 30, 2019.

(2) Differences in the Gross Amounts between periods are due to the write down of fully amortized assets and additions during the period.