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Identifiable Intangible Assets
 12 Months Ended
Dec. 31, 2019
Identifiable Intangible Assets
NOTE 6—Identifiable intangible assets:
Identifiable intangible assets consisted of the following:
                                                 
 
  
Gross carrying amount
net of impairment
    
Accumulated
amortization
    
Net carrying amount
  
 
  
December 31,
  
 
  
    2019    
 
  
    2018    
 
  
2019
 
  
2018
 
  
2019
 
  
2018
 
 
  
(U.S. $ in millions)
  
Product rights
  $
19,663
    $
20,361
    $
10,640
     $
9,565
     $
9,023
    $
10,796
 
Trade names
   
600
     
606
     
126
     
91
     
474
      
515
  
In-process
research and development (IPR&D)
    
1,735
      
2,694
      
—  
     
—  
      
1,735
      
2,694
  
                                                 
Total
  $
21,998
    $
23,661
    $
10,766
     $
9,656
     $
11,232
    $
14,005
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product rights and trade names
Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 12 years. Amortization of intangible assets amounted to $1,113 million, $1,166 million and $1,444 million in the years ended December 31, 2019, 2018 and 2017, respectively.
As of December 31, 2019, the estimated aggregate amortization of intangible assets for the years 2020 to 2024 is as follows: 2020—$1,019 million; 2021—$856 million; 2022—$794 million; 2023—$790 million and 2024—$773 million. These estimates do not include the impact of IPR&D that is expected to be successfully completed and reclassified to product rights.
IPR&D
Teva’s IPR&D are assets that have not yet been approved in major markets. Teva’s IPR&D is comprised mainly of the following acquisitions and related assets: various generic products (Actavis Generics)—$1,453 million; various generic products (Rimsa)—$48 million and
A
USTEDO
—$211 million. IPR&D carry intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods.
In 2019, Teva reclassified
$291 
million of products from IPR&D to product rights following regulatory approval,
of which
$174 
million
 were reclassified
in connection with methylphenidate ER.
Intangible assets impairment
Impairment of identifiable intangible assets amounted to $1,639 million, $1,991 million
and $3,238 million in the years ended December 31, 2019, 2018 and 2017, respectively
. These amounts
are recorded in earnings under intangible assets impairment.
Impairments in 2019 mainly consisted of:
1.
Identifiable product rights of $
958
 million,
mainly
related to: (i)
$
647
 
million due to updated market assumptions regarding price and volume of
certain
products acquired from Actavis Generics and primarily marketed in the United States
,
(ii)
$
128
 
million related to
a
decrease in future expected sales
in Japan as a result of
generic competition
,
 and
 (iii) $123 million related to
the
discontinuation of
certain
products from Actavis
 Generics
’ portfolio in several international markets
.
 
 
 
 
 
 
 
 
 
 
 
 
2.
IPR&D assets of $681 million, related to: (i) $497 
million related to various generic pipeline products acquired from Actavis Generics
,
due to development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate) in the United States
,
(ii) $125 
million related to lenalidomide (generic equivalent of REVLIMID
®
)
,
due to modified competition assumptions as a result of settlements between the innovator and other generic filers
,
and
 
(iii) $59 million
related to a change in assumptions concerning the future European market share of a number of pipeline products acquired from Actavis Generics.