Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Note 9. Goodwill and Intangible Assets

The table below shows the weighted-average life, original cost, accumulated amortization, and net book value by major intangible asset classification:


	Weighted-Average			Accumulated
	Life (Years)	Original Cost		Amortization		Net Book Value

	(in thousands)
Definite-lived intangible assets
IMS (UK) international product rights	10	$	8,655	$	5,770	$	2,885
Patents	12		486		366		120
Land-use rights	39		2,540		766		1,774
Subtotal	11		11,681		6,902		4,779
Indefinite-lived intangible assets
Trademark	*		29,225		—		29,225
Goodwill - Finished pharmaceutical products	*		3,175		—		3,175
Subtotal	*		32,400		—		32,400
As of March 31, 2023	*	$	44,081	$	6,902	$	37,179


	Weighted-Average			Accumulated
	Life (Years)	Original Cost		Amortization		Net Book Value

	(in thousands)
Definite-lived intangible assets
IMS (UK) international product rights	10	$	8,462	$	5,430	$	3,032
Patents	12		486		362		124
Land-use rights	39		2,540		749		1,791
Subtotal	11		11,488		6,541		4,947
Indefinite-lived intangible assets
Trademark	*		29,225		—		29,225
Goodwill - Finished pharmaceutical products	*		3,126		—		3,126
Subtotal	*		32,351		—		32,351
As of December 31, 2022	*	$	43,839	$	6,541	$	37,298

^*	Intangible assets with indefinite lives have an indeterminable average life.

Goodwill

The changes in the carrying amounts of goodwill are as follows:


	March 31,		December 31,
	2023		2022

	(in thousands)
Beginning balance	$	3,126	$	3,313
Currency translation		49		(187)
Ending balance	$	3,175	$	3,126

Primatene^® Trademark

In January 2009, the Company acquired the exclusive rights to the trademark, domain name, website and domestic marketing, distribution and selling rights related to Primatene MIST^®, an over-the-counter bronchodilator product, recorded at the allocated fair value of $29.2 million, which is its carrying value as of March 31, 2023.

The trademark was determined to have an indefinite life. In determining its indefinite life, the Company considered the following: the expected use of the intangible; the longevity of the brand; the legal, regulatory and contractual provisions that affect their maximum useful life; the Company’s ability to renew or extend the asset’s legal or contractual life without substantial costs; effects of the regulatory environment; expected changes in distribution channels; maintenance expenditures required to obtain the expected future cash flows from the asset; and considerations for obsolescence, demand, competition and other economic factors.