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Intangible Assets
9 Months Ended
Sep. 30, 2012
Intangible Assets [Abstract]  
Intangible Assets

5.Intangible Assets 

Intangible assets are reviewed for impairment when facts or circumstances suggest that the carrying value of these assets may not be recoverable. The Company’s policy is to identify and record impairment losses on intangible product rights when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. It is the Company’s policy to expense costs as incurred in connection with the renewal or extension of its intangible assets.

As part of the acquisition of NovaMed, the Company recorded intangible assets related to promotion and distribution contract rights that were included in the Company’s China segment. During the three months ended September 30, 2012, the Company identified impairment indicators related to the intangible assets.  The Company determined that the undiscounted cash flows estimated to be generated by the intangible assets were less than the carrying amounts. The Company further performed a discounted cash flow analysis related to the intangible assets and determined that a full impairment should be recorded.. As a result, the Company recognized a non-cash impairment loss of approximately $42.7 million on its Condensed Consolidated Statements of Operations for the three- and nine-month periods ended September 30, 2012.

The Company recorded a net benefit for income tax of $5.7 million and $4.1 million for the three- and nine month periods ended September 30, 2012, respectively, primarily due to the impairment of intangible assets, which resulted in a reversal of deferred tax liabilities, partially offset by the impact of recording a full valuation allowance on any remaining NovaMed deferred tax assets.