Intangible Assets

9.	INTANGIBLE ASSETS

The following table summarizes the carrying amount of our intangible assets (in thousands):


	December 31,
	2011		2010
Goodwill	$	1,004,102	$	532,669
Finite-lived intangible assets		796,664		863,393
Indefinite-lived intangible assets		266,200		29,530

Total	$	2,066,966	$	1,425,592

Goodwill

The following table summarizes the changes in the carrying amount of goodwill (in thousands):


Balance at December 31, 2010	$	532,669
Goodwill resulting from the acquisition of Arresto		134,482
Goodwill resulting from the acquisition of Calistoga		336,951

Balance at December 31, 2011	$	1,004,102

Finite-Lived Intangible Assets

The following table summarizes our finite-lived intangible assets (in thousands):


	December 31, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Intangible asset - Ranexa	$	688,400	$	97,099	$	688,400	$	54,795
Intangible asset - Lexiscan		262,800		69,723		262,800		43,979
Other		24,995		12,709		22,095		11,128

Total	$	976,195	$	179,531	$	973,295	$	109,902

Amortization expense related to intangible assets was $69.6 million and $59.9 million for the years ended December 31, 2011 and 2010, respectively, and was recorded in cost of goods sold in our Consolidated Statement of Income. Amortization expense related to intangible assets was $43.4 million for the year ended December 31, 2009 and was recorded primarily in cost of goods sold in our Consolidated Statement of Income. The weighted-average amortization period for these intangible assets is approximately ten years.

As of December 31, 2011, 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
2012	$	63,345
2013		64,283
2014		66,735
2015		73,261
2016		100,048

Total	$	367,672

Indefinite-Lived Intangible Assets

As of December 31, 2011, we had indefinite-lived intangible assets of $266.2 million which consisted of $117.0 million and $149.2 million of purchased IPR&D from our acquisitions of Arresto and Calistoga, respectively. During the fourth quarter of 2011, we recorded $26.6 million of impairment charges related to certain IPR&D assets acquired from CGI. These impairment charges were a result of changes in the anticipated market share related to the Syk compound. The $2.9 million purchased IPR&D project from CV Therapeutics was completed and reclassified as a finite-lived intangible asset in 2011, and is currently being amortized over its estimated useful life.

As of December 31, 2010, we had indefinite-lived intangible assets of $29.5 million, which consisted of $26.6 million and $2.9 million of purchased IPR&D from our acquisitions of CGI and CV Therapeutics, respectively. In the fourth quarter of 2010, we recorded $136.0 million of impairment charges in R&D expense related to certain IPR&D assets acquired from CV Therapeutics which we had no future plans to develop and which were deemed to have no future use to us or other market participants. The majority of the impairment charge related to our GS-9667 program, a product candidate that was in Phase 1 clinical studies for the treatment of diabetes and hypertriglyceridemia, which was terminated due to unfavorable results from pharmacokinetics and pharmacodynamics tests that demonstrated limited effectiveness of the compound in patients. Given these results, we do not believe it has alternative future uses for us or other market participants.

- 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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