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Goodwill
12 Months Ended
Dec. 31, 2011
Goodwill [Abstract]  
Goodwill

Note 9 – Goodwill:

As noted in Note 2, "Anchen Acquisition," we acquired Anchen for $412,753 thousand in aggregate consideration. Based upon our preliminary purchase price allocation, we recorded $219,703 thousand of incremental goodwill. This goodwill was allocated to Par.

 

In 2004, we acquired all of the capital stock of Kali Laboratories, Inc., a generic pharmaceutical research and development company, for approximately $142,800 thousand in cash and warrants to purchase 150,000 shares of our common stock valued at approximately $2,500 thousand. The acquisition resulted in goodwill of $63,729 thousand, which was allocated to Par.

 

In accordance with FASB ASC 350-20-35-30, goodwill which totaled $283,432 thousand at December 31, 2011 and $63,729 thousand at December 31, 2010 is not being amortized, but is tested at least annually, on or about December 31st or whenever events or changes in business circumstances necessitate an evaluation for impairment using a fair value approach. The goodwill impairment test consists of a two-step process. The first step is to identify a potential impairment and the second step measures the amount of impairment, if any. Goodwill is deemed to be impaired if the carrying amount of a reporting unit exceeds its estimated fair value. As of December 31, 2011, Par performed its annual goodwill impairment assessment noting no impairment. No impairments of goodwill have been recognized through December 31, 2011.