Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2016

Note 10. Goodwill and Intangible Assets

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

(In thousands)	Generic Pharmaceuticals
Balance at June 30, 2015	$	141
Goodwill acquired	333,470

Balance at June 30, 2016	$	333,611

Intangible assets, net as of June 30, 2016 and June 30, 2015, consisted of the following:

	Weighted	Gross Carrying Amount				Accumulated Amortization						Intangible Assets, Net
(In thousands)	Avg. Life (Yrs.)	June 30, 2016		June 30, 2015		June 30, 2016			June 30, 2015			June 30, 2016		June 30, 2015

Definite-lived:
Cody Labs import license	15	$	582	$	582	$	(309	)	$	(269	)	$	273	$	313
KUPI product rights	15	427,000		—		(17,119		)	—			409,881		—
KUPI trade name	2	2,920		—		(878		)	—			2,042		—
KUPI other intangible assets	15	19,000		—		(762		)	—			18,238		—
Silarx product rights	15	10,000		10,000		(722		)	(56		)	9,278		9,944
Other product rights	14	653		653		(311		)	(269		)	342		384

Total definite-lived		$	460,155	$	11,235	$	(20,101	)	$	(594	)	$	440,054	$	10,641


Indefinite-lived:
KUPI in-process research and development	—	$	117,000	$	—	$	—		$	—		$	117,000	$	—
Silarx in-process research and development	—	18,000		18,000		—			—			18,000		18,000
Other product rights	—	449		449		—			—			449		449

Total indefinite-lived		135,449		18,449		—			—			135,449		18,449

Total intangible assets, net		$	595,604	$	29,684	$	(20,101	)	$	(594	)	$	575,503	$	29,090

For the fiscal years ended June 30, 2016, 2015 and 2014, the Company recorded amortization expense of $19.5 million, $137 thousand and $1.4 million, respectively.

As part of the Company’s annual impairment analysis performed during the fourth quarter of Fiscal 2016, the Company recorded an impairment charge of $8.0 million related to certain intangible assets acquired as part of the KUPI acquisition resulting in a decrease of IPR&D assets at June 30, 2016. The impairment was mainly related to delays in expected launch dates as well as competitive pricing factors for two products in development.

Future annual amortization expense consists of the following:

(In thousands) Fiscal Year Ending June 30,	Annual Amortization Expense
2017	$	31,942
2018	31,064
2019	30,479
2020	30,472
2021	30,472
Thereafter	285,625

	$	440,054

- 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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