Intangible Assets and Goodwill
Intangible Assets: Our intangible assets consist of developed product rights obtained primarily from the Pharmion Corp. (Pharmion), Gloucester and Abraxis acquisitions, IPR&D product rights from the Gloucester and Avila acquisitions and technology obtained primarily from the Avila acquisition. Also included are contract-based licenses and other miscellaneous intangibles. The amortization periods related to non-IPR&D intangible assets range from one to 17 years. The following summary of intangible assets by category includes intangibles currently being amortized and intangibles not yet subject to amortization:
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December 31, 2013 | | Gross Carrying Value | | Accumulated Amortization | | Intangible Assets, Net | | Weighted Average Life (Years) |
Amortizable intangible assets: | | | | | | | | |
Acquired developed product rights | | $ | 3,405.9 |
| | $ | (1,026.4 | ) | | $ | 2,379.5 |
| | 13.0 |
Technology | | 333.7 |
| | (87.4 | ) | | 246.3 |
| | 7.0 |
Licenses | | 66.2 |
| | (13.9 | ) | | 52.3 |
| | 16.5 |
Other | | 42.5 |
| | (18.8 | ) | | 23.7 |
| | 8.6 |
| | 3,848.3 |
| | (1,146.5 | ) | | 2,701.8 |
| | 12.5 |
Non-amortized intangible assets: | | | | | | | | |
Acquired IPR&D product rights | | 137.9 |
| | — |
| | 137.9 |
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Total intangible assets | | $ | 3,986.2 |
| | $ | (1,146.5 | ) | | $ | 2,839.7 |
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December 31, 2012 | | Gross Carrying Value | | Accumulated Amortization | | Intangible Assets, Net | | Weighted Average Life (Years) |
Amortizable intangible assets: | | | | | | | | |
Acquired developed product rights | | $ | 3,400.4 |
| | $ | (814.5 | ) | | $ | 2,585.9 |
| | 13.0 |
Technology | | 333.3 |
| | (39.8 | ) | | 293.5 |
| | 7.0 |
Licenses | | 64.3 |
| | (10.0 | ) | | 54.3 |
| | 16.8 |
Other | | 43.4 |
| | (14.6 | ) | | 28.8 |
| | 8.5 |
| | 3,841.4 |
| | (878.9 | ) | | 2,962.5 |
| | 12.5 |
Non-amortized intangible assets: | | | | | | | | |
Acquired IPR&D product rights | | 137.9 |
| | — |
| | 137.9 |
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Total intangible assets | | $ | 3,979.3 |
| | $ | (878.9 | ) | | $ | 3,100.4 |
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The gross carrying value of intangible assets increased by $6.9 million in 2013 compared to 2012 primarily resulting from the acquisition of $5.5 million in certain developed product rights and the addition of $3.9 million from other miscellaneous agreements, net of a $2.5 million impairment charge.
Amortization expense was $270.1 million, $196.2 million and $290.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense increased by $73.9 million in 2013 compared to 2012 primarily due to the October 2012 approval of ABRAXANE® in the United States for the treatment of NSCLC which resulted in the commencement of amortization of the related intangible asset and an increase in amortization of technology related to the March 7, 2012 acquisition of Avila and its Avilomics™ platform. Assuming no changes in the gross carrying amount of intangible assets, the amortization of intangible assets for years 2014 through 2018 is estimated to be in the range of approximately $255.0 million to $270.0 million annually.
Goodwill: At December 31, 2013, our goodwill related to the 2012 acquisition of Avila, the 2010 acquisitions of Abraxis and Gloucester, the 2008 acquisition of Pharmion and the 2004 acquisition of Penn T Limited.
The change in carrying value of goodwill is summarized as follows:
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Balance at December 31, 2012 | $ | 2,042.8 |
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Tax benefit on the exercise of Pharmion converted stock options | (1.6 | ) |
Balance at December 31, 2013 | $ | 2,041.2 |
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