Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company acquired the assets of Canadian pharmaceutical company Alveda Pharmaceuticals, Inc., in November 2015. As a result of the acquisition, we recorded goodwill of $0.4 million. We assess the recoverability of the carrying value of goodwill in the fourth quarter of each year, and whenever events occur or circumstances change that would, more likely than not, reduce the fair value of our reporting unit below its carrying value. There have been no events or changes in circumstances that would have reduced the fair value of our reporting unit below its carrying value. No impairment losses were recognized during the year ended December 31, 2017.

Changes in goodwill during the two years ended December 31, 2016 and December 31, 2017 were as follows (in thousands):



	Goodwill
December 31, 2015	$	426
Foreign currency translation	20
December 31, 2016	446
Foreign currency translation	25
December 31, 2017	$	471

Intangible Assets

The following sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2017 and December 31, 2016 for those assets that are not already fully amortized (dollar amounts in thousands):



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Amortization Period
Trademarks and Technology	$	40,380	$	(5,684	)	$	34,696	12.8
In-process research and development (“IPR&D”)	18,311		—			18,311		N/A - Indefinite lived
Customer relationships	3,783		(773		)	3,010		7.9
Total	$	62,474	$	(6,457	)	$	56,017



	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Amortization Period
Trademarks and Technology	$	35,403	$	(3,123	)	$	32,280	13.8
In-process research and development (“IPR&D”)	17,024		—			17,024		N/A - Indefinite lived
Customer relationships	3,565		(404		)	3,161		8.9
Total	$	55,992	$	(3,527	)	$	52,465

Changes in intangibles during the two years ended December 31, 2016 and December 31, 2017 were as follows (in thousands):



	Trademarks and Technology			IPR&D			Customer Relationships
December 31, 2015	$	36,552		$	14,351		$	3,417
Acquisition	661			2,811			—
Amortization	(2,472		)	—			(361		)
Foreign currency translation	(2,461		)	(138		)	105
December 31, 2016	32,280			17,024			3,161
Acquisition
Amortization	(2,561		)	—			(369		)
IPR&D placed in service	834			(834		)	—
Impairment	—			(113		)	—
Foreign currency translation	4,143			2,234			218
December 31, 2017	$	34,696		$	18,311		$	3,010

Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on product rights and other related intangibles for each of the following years is estimated to be as follows (in thousands):



Year ending December 31,		Amortization Expense *
2018		2,930
2019		2,930
2020		2,930
2021		2,930
2022		2,930
Thereafter		23,058

*IPR&D amounts are assessed for impairment at least annually and will be amortized once products are approved, including the product's respective manufacturing process approvals, and are not included in the table.

The useful lives of the Company’s intangibles is as follows:



Intangibles Category		Amortizable Life
Trademarks and Technology		15 years
Customer Relationships		10 years

- 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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