Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2019

Note 10. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the nine months ended March 31, 2019 are as follows:


	Generic
(In thousands)	Pharmaceuticals
Balance at June 30, 2018	$	339,566
Goodwill acquired		—
Impairment		(339,566)
Balance at March 31, 2019	$	—

On August 17, 2018, JSP notified the Company that it would not extend or renew the JSP Distribution Agreement when the current term expires on March 23, 2019. The Company determined that JSP’s decision represented a triggering event under U.S. GAAP to perform an analysis to determine the potential for impairment of goodwill. On October 4, 2018, the Company completed the analysis based on market data and concluded a full impairment of goodwill was required.

Intangible assets, net as of March 31, 2019 and June 30, 2018, consisted of the following:


	Weighted	Gross Carrying Amount				Accumulated Amortization				Intangible Assets, Net
	Avg. Life	March 31,		June 30,		March 31,		June 30,		March 31,		June 30,
(In thousands)	(Yrs.)	2019		2018		2019		2018		2019		2018

Definite-lived:
Cody Labs import license	15	$	—	$	581	$	—	$	(386)	$	—	$	195
KUPI product rights	15		416,154		416,154		(90,648)		(69,840)		325,506		346,314
KUPI trade name	2		2,920		2,920		(2,920)		(2,920)		—		—
KUPI other intangible assets	15		19,000		19,000		(4,245)		(3,295)		14,755		15,705
Silarx product rights	15		10,000		10,000		(2,556)		(2,056)		7,444		7,944
Other product rights	13		21,692		19,693		(3,873)		(1,875)		17,819		17,818
Total definite-lived		$	469,766	$	468,348	$	(104,242)	$	(80,372)	$	365,524	$	387,976

Indefinite-lived:
KUPI in-process research and development	—	$	18,000	$	18,000	$	—	$	—	$	18,000	$	18,000
Silarx in-process research and development	—		18,000		18,000		—		—		18,000		18,000
Other product rights	—		449		449		—		—		449		449
Total indefinite-lived			36,449		36,449		—		—		36,449		36,449
Total intangible assets, net		$	506,215	$	504,797	$	(104,242)	$	(80,372)	$	401,973	$	424,425

For the three months ended March 31, 2019 and 2018, the Company recorded amortization expense of $7.9 million and $8.3 million, respectively. For the nine months ended March 31, 2019 and 2018, the Company recorded amortization expense of $24.3 million and $24.6 million, respectively.

Future annual amortization expense consisted of the following as of March 31, 2019:


(In thousands)
Fiscal Year Ending June 30,	Annual Amortization Expense
2019	$	7,808
2020		31,232
2021		31,232
2022		31,232
2023		31,232
Thereafter		232,788
	$	365,524

- 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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