Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies

Schedule of inventories, net of reserves

Inventories are stated at the lower of cost (first-in, first-out method) or market (current replacement cost) and consist of the following, net of reserves (in thousands):

	December 31,
	2012		2011
Raw materials	$	13,603	$	9,171
Work in progress		11,708		14,222
Finished goods		11,943		22,588
Total inventories(1)	$	37,254	$	45,981

(1)

During the year ended December 31, 2012, we increased our reserves for obsolescence by $8.9 million which represents the cost of the nebulizer incorporated into our Tyvaso Inhalation System expected to be rendered obsolete based on the pending commercial release in 2013 of our improved nebulizer, the TD-100.

Schedule of goodwill and other intangible assets

Goodwill and other intangible assets comprise the following (in thousands):

	As of December 31, 2012							As of December 31, 2011
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Goodwill(1)	$	10,530	$	—		$	10,530	$	8,123	$	—		$	8,123
Other intangible assets(1):
Technology, patents and tradenames		4,859		(2,825	)		2,034		4,766		(1,999	)		2,767
Customer relationships and non-compete agreements		4,749		(2,232	)		2,517		4,653		(1,658	)		2,995
Contract-based(2)		2,020		(693	)		1,327		8,350		(148	)		8,202
Total	$	22,158	$	(5,750	)	$	16,408	$	25,892	$	(3,805	)	$	22,087

(1)

Includes foreign currency translation adjustments.

(2)

Refer to Note 16—Acquisitions—Revivicor, Inc.

Future amortization of other intangible assets

As of December 31, 2012, aggregate amortization expense relating to intangible assets for each of the five succeeding years and thereafter is estimated as follows (in thousands):

Year Ended December 31,
2013	$	1,957
2014		1,540
2015		1,185
2016		656
2017		450
Thereafter		90
	$	5,878

Schedule of property, plant and equipment and the estimated useful lives

Buildings	25-39 Years
Building improvements	10-39 Years
Furniture, equipment and vehicles	3-15 Years
Leasehold improvements	Remaining lease term, or the estimated useful life of the improvement, whichever is shorter

        Property, plant and equipment consists of the following (in thousands):

	As of December 31,
	2012			2011
Land	$	38,104		$	21,723
Buildings, building improvements and leasehold improvements		393,174			249,289
Buildings under construction		4,302			72,511
Furniture, equipment and vehicles		96,096			75,801
		531,676			419,324
Less—accumulated depreciation		(77,991	)		(53,278	)
Property, plant and equipment, net	$	453,685		$	366,046

Schedule of revenues from a single customer

Estimated net revenues from that customer were as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Accredo Health Group, Inc.	$	514,095	$	455,504	$	387,251