(8) Product Acquisitions

All product acquisitions made after January 1, 2009 have been accounted for pursuant to FASB ASC 805.

The following schedule represents intangible assets recognized in connection with product acquisitions (See description of Business, Basis of Consolidation and Significant Accounting Policies for the Company’s accounting policy regarding intangible assets):


	Amount
Intangible assets at December 31, 2011	$	116,189
Acquisitions during fiscal 2012		3,473
Impact of movement in exchange rates		(118	)
Amortization expense		(6,023	)

Intangible assets at December 31, 2012	$	113,521
Impact of movement in exchange rates		(162	)
Amortization expense		(6,352	)

Intangible assets at December 31, 2013	$	107,007
Write off during fiscal 2014		(319	)
Impact of movement in exchange rates		(86	)
Amortization expense		(6,391	)

Intangible assets at December 31, 2014	$	100,211

The following schedule represents the gross carrying amount and accumulated amortization of the intangible assets. Product rights are amortized over their expected useful lives of 25 years. Customer lists are amortized over their expected useful lives of ten years, and trademarks are amortized over their expected useful lives of 25 years.


	2014						2013
$000’s	Gross		Accumulated Amortization		Net Book Value		Gross		Accumulated Amortization		Net Book Value
Product Rights	$	138,466	$	49,733	$	88,733	$	139,094	$	44,254	$	94,840
Customer Lists		1,091		437		654		1,091		328		763
Trademarks		12,941		2,117		10,824		12,941		1,537		11,404

Total Intangibles	$	152,498	$	52,287	$	100,211	$	153,126	$	46,119	$	107,007

The following schedule represents future amortization charges related to intangible assets:


Year ending December 31,
2015	$	6,371
2016		6,371
2017		6,371
2018		6,371
2019		6,371
Thereafter		68,356

	$	100,211

The following schedule represents the Company’s obligations under product acquisitions and licensing agreements:


	Amount
Obligations under acquisition agreements at December 31, 2011	$	17,624
Additional obligations acquired		1,073
Adjustment to deferred liabilities		(216	)
FX impact		48
Amortization of discounted liabilities		818
Payments on existing obligations		(7,447	)

Obligations under acquisition agreements at December 31, 2012	$	11,900
Adjustment to deferred liabilities		(297	)
FX impact		(1	)
Amortization of discounted liabilities		174
Payments on existing obligations		(7,890	)

Obligations under acquisition agreements at December 31, 2013	$	3,886
Adjustment to deferred liabilities		(32	)
Amortization of discounted liabilities		324
Payments on existing obligations		(1,686	)

Obligations under acquisition agreements at December 31, 2014	$	2,492

During 2014, the Company remeasured the fair value of the earn out liabilities related to the acquisitions completed in the first quarter of 2010. Based on the remeasurement, the fair value was reduced by $32. The fair value change had the effect of reducing operating expenses by $32.

During 2013, the Company remeasured the fair value of the earn out liabilities related to the acquisitions completed in the first quarter of 2010. Based on the remeasurement, the fair value was reduced by $297. The fair value change had the effect of reducing operating expenses by $297.

During 2012, the Company remeasured the fair value of the earn out liabilities related to the acquisitions completed in the first quarter of 2010. Based on the remeasurement, the fair value was reduced by $216. The fair value change had the effect of reducing cost of sales by $0 and operating expenses by $216.

As of December 31, 2014, the $2,492 in remaining obligations under product acquisitions and licensing agreements is included in other liabilities.