INTANGIBLE ASSETS AND GOODWILL
Intangible Assets
The following table summarizes the carrying amount of our intangible assets (in thousands):
|
| | | | | | | | |
| | December 31, |
| | 2013 | | 2012 |
Indefinite-lived intangible assets | | $ | 574,355 |
| | $ | 10,986,200 |
|
Finite-lived intangible assets | | 11,325,751 |
| | 750,193 |
|
Total intangible assets | | $ | 11,900,106 |
| | $ | 11,736,393 |
|
Indefinite-Lived Intangible Assets
As of December 31, 2012, our indefinite-lived intangible assets consisted primarily of the purchased IPR&D, now known commercially as Sovaldi (sofosbuvir) from our acquisition of Pharmasset. Upon FDA approval and commercial launch of Sovaldi in December 2013, we reclassified the IPR&D related to Sovaldi to finite-lived intangible assets. In 2013, we also completed our acquisition of YM. Of the total $487.6 million fair value of acquired assets and assumed liabilities for YM, we attributed $362.7 million to IPR&D related to momelotinib on our Consolidated Balance Sheet. The following table summarizes our indefinite-lived intangible assets (in thousands):
|
| | | | | | | | |
| | December 31, |
| | 2013 | | 2012 |
Indefinite-lived intangible asset - Sovaldi (sofosbuvir) | | $ | — |
| | $ | 10,720,000 |
|
Indefinite-lived intangible asset - Momelotinib (formerly CYT387) | | 362,700 |
| | — |
|
Indefinite-lived intangible assets - Other | | 266,200 |
| | 266,200 |
|
| | 628,900 |
| | 10,986,200 |
|
Foreign currency translation adjustment | | (54,545 | ) | | — |
|
Total | | $ | 574,355 |
| | $ | 10,986,200 |
|
Finite-Lived Intangible Assets
The following table summarizes our finite-lived intangible assets (in thousands):
|
| | | | | | | | | | | | | | | | |
| | December 31, 2013 | | December 31, 2012 |
| | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
Intangible asset - Sofosbuvir | | $ | 10,720,000 |
| | $ | 58,261 |
| | $ | — |
| | $ | — |
|
Intangible asset - Ranexa | | 688,400 |
| | 190,849 |
| | 688,400 |
| | 133,119 |
|
Intangible asset - Lexiscan | | 262,800 |
| | 121,210 |
| | 262,800 |
| | 95,466 |
|
Other | | 42,995 |
| | 18,124 |
| | 42,995 |
| | 15,417 |
|
Total | | $ | 11,714,195 |
| | $ | 388,444 |
| | $ | 994,195 |
| | $ | 244,002 |
|
Upon FDA approval and commercial launch of Sovaldi in December 2013, we reclassified the IPR&D related to Sovaldi to finite-lived intangible assets. Amortization expense related to finite-lived intangible assets included primarily in cost of goods sold in our Consolidated Statements of Income totaled $143.3 million in 2013, $63.3 million in 2012 and $69.6 million in 2011. The weighted-average amortization period for all finite-lived intangible assets is approximately 15 years. As of December 31, 2013, the estimated future amortization expense associated with our intangible assets for each of the five succeeding fiscal years is as follows (in thousands):
|
| | | |
Fiscal Year | Amount |
2014 | $ | 798,044 |
|
2015 | 803,496 |
|
2016 | 811,428 |
|
2017 | 815,872 |
|
2018 | 827,980 |
|
Total | $ | 4,056,820 |
|
Goodwill
Upon completing the acquisition of YM, we attributed $127.2 million to goodwill on our Consolidated Balance Sheets. The following table summarizes the changes in the carrying amount of goodwill (in thousands): |
| | | |
Balance at December 31, 2012 | $ | 1,060,919 |
|
Goodwill resulting from the acquisition of YM | 127,238 |
|
Foreign currency translation adjustment | (19,134 | ) |
Balance at December 31, 2013 | $ | 1,169,023 |
|
