XML 53 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Anchen Acquisition (Anchen Acquisition [Member])
3 Months Ended
Mar. 31, 2012
Anchen Acquisition [Member]
 
Business Acquisition [Line Items]  
Anchen Acquisition

Note 2 – Anchen Acquisition:

 

On November 17, 2011, through Par Pharmaceutical, Inc., our wholly-owned subsidiary, we completed our acquisition of Anchen Incorporated and its subsidiary Anchen Pharmaceuticals, Inc. (collectively referred to as "Anchen") for $412,753 thousand in aggregate consideration (the "Anchen Acquisition"), subject to post-closing adjustment. The Anchen Acquisition has been accounted for as a business purchase combination using the acquisition method of accounting under the provisions of ASC No. 805, "Business Combinations," ("ASC 805"). The acquisition method of accounting uses the fair value concept defined in ASC 820, "Fair Value Measurements and Disclosures." The excess of the purchase price (consideration transferred) over the estimated amounts of identifiable assets and liabilities of Anchen as of the effective date of the acquisition was allocated to goodwill in accordance with ASC 805. The purchase price allocation is subject to completion of our analysis of the fair value of the assets and liabilities of Anchen as of the effective date of the Anchen Acquisition. Accordingly, the initial purchase price allocation is preliminary and may be adjusted upon completion of the final valuation. These adjustments could be material. The final valuation is expected to be completed as soon as practicable but no later than one year from the consummation of the acquisition on November 17, 2011. The establishment of the fair value of the consideration for an acquisition, and the allocation to identifiable tangible and intangible assets and liabilities requires the extensive use of accounting estimates and management judgment. We believe the fair values assigned to the assets acquired and liabilities assumed are based on reasonable estimates and assumptions based on data currently available. No adjustments were made to the purchase price allocation during the three months ended March 31, 2012.