Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2012

21. Goodwill and Other Intangible Assets


	Goodwill			Other Intangible Assets			Total
	(In millions)
Cost:
At January 1, 2011	$	257.1		$	426.0		$	683.1
Additions		—			2.6			2.6
Disposals		(49.7	)		(173.0	)		(222.7	)
Impairment		—			(0.3	)		(0.3	)

At December 31, 2011	$	207.4		$	255.3		$	462.7

Additions		—			1.9			1.9
Disposals		(0.6	)		(4.4	)		(5.0	)
Transferred to assets held for sale		(110.8	)		(159.2	)		(270.0	)
Impairment		—			—			—

At December 31, 2012	$	96.0		$	93.6		$	189.6

Accumulated amortization:
At January 1, 2011	$	—		$	(306.6	)	$	(306.6	)
Charged in year		—			(15.9	)		(15.9	)
Disposals		—			169.7			169.7

At December 31, 2011	$	—		$	(152.8	)	$	(152.8	)

Charged in year		—			(14.6	)		(14.6	)
Disposals		—			3.8			3.8
Transferred to assets held for sale		—			74.8			74.8
Impairment		—			(1.8	)		(1.8	)

At December 31, 2012		—			(90.6	)		(90.6	)

Net book value: December 31, 2012	$	96.0		$	3.0		$	99.0

Net book value: December 31, 2011	$	207.4		$	102.5		$	309.9

Other intangible assets consist primarily of computer software as follows (in millions):


	2012		2011
Tysabri	$	—	$	96.9
Other intangible assets		3.0		5.6

Total other intangible assets	$	3.0	$	102.5

The assets of the Tysabri business, which have been classified as held for sale as of December 31, 2012, include goodwill that has been allocated to the Tysabri business of $110.8 million and other intangible assets of $84.4 million. For information on the assets of the Tysabri business, which have been classified as held for sale as of December 31, 2012, refer to Note 15.

On December 20, 2012, we completed the separation of the Prothena Business into a new, publicly traded company incorporated in Ireland. In connection with this transaction, we disposed of goodwill of $0.6 million which was allocated to the Prothena Business. In 2012, we also recorded an impairment charge of $1.8 million within other net charges in respect of computer software and other intangible assets which will no longer be utilized as a result of separation of the Prothena Business and cessation of the remaining early stage research activities. For additional information on this transaction, refer to Note 28.

On September 16, 2011, we announced the completion of the merger between Alkermes, Inc. and EDT. As part of this transaction, we disposed of patents, licenses, IP and other intangible assets related to EDT with a net book value of $3.3 million. We also disposed of goodwill of $49.7 million which was allocated to the EDT business. For additional information on this transaction, refer to Note 5. In 2011, we also recorded an impairment charge of $0.3 million (2010: $0.9 million) within other net charges in respect of computer software which will no longer be utilized.

The weighted-average remaining useful life for other intangible assets at December 31, 2012 was 3.0 years (2011: 7.6 years).

Amortization expense for the year ended December 31, 2012 amounted to $14.6 million (2011: $15.9 million; 2010: $28.4 million) and is recorded as cost of sales, selling, general and administrative (SG&A) expenses and R&D expenses in the Consolidated Statements of Operations, as it relates to the respective functions.

As of December 31, 2012, our expected future amortization expense of currently held other intangible assets is as follows (in millions):


Year ending December 31, 2013	$	1.3
2014		0.8
2015		0.6
2016		0.2
2017		0.1
2018 and thereafter		—

Total	$	3.0

- 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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